The Problem of Externality
@article{Dahlman1979ThePO, title={The Problem of Externality}, author={C. Dahlman}, journal={The Journal of Law and Economics}, year={1979}, volume={22}, pages={141 - 162} }
ON the modern research agenda externalities occupy a rather prominent position. The increasing complexity of modern technology and society seems to create yet additional unwanted side effects that require classification on a lengthening list of externalities. However, externalities are of interest not only as current policy issues but also from a more theoretical point of view. Using Pigou's terminology, we say that when an externality is present there is a divergence between private and social… CONTINUE READING
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