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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