Hamlen, William A. - In: Bell Journal of Economics 8 (1977) 1, pp. 324-334
This paper extends the Baumol-Oates result which proves that a fee (subsidy) which achieves a given level of an undepletable externality (pure public good), does so at a minimum cost to society. The extension proves that such a fee (subsidy) is also a quasi-optimal Pareto solution for a...