In this paper, we show that consumption externalities are a source of equilibrium indeterminacy in a growth model with …' consumption is constant along the equilibrium path, the equilibrium does not exhibit indeterminacy. In contrast, when that … marginal rate of substitution is not constant, the equilibrium may exhibit indeterminacy even if the elasticity of the labor …

We implement a family of efficient proposals to share benefits generated in environments with externalities. These … proposals extend the Shapley value to games with externalities and are parametrized through the method by which the … externalities are averaged. We construct two slightly different mechanisms: one for environments with negative externalities and the …

Regulations that constrain firms’ externalities in one dimension can distort incentives and worsen externalities in …

We consider environments in which agents can cooperate on multiple issues and externalities are present both within and … across issues. We propose a way to extend (Shapley) values that have been put forward to deal with externalities within … issues to games where there are externalities within and across issues. We characterize our proposal through axioms that …

Economic activities, both on the macro and micro level, often entail wide-spread externalities. This in turn leads to … deciding upon the distribution of the gains (costs) of cooperation in the presence of externalities. This method is shown to be …