frictions, such as taxicabs, trucks and bulk shipping. We illustrate the impact of two externalities: the well-known thin …/thick market externalities and what we call pooling externalities. We characterize analytically the conditions for efficiency, show …

types of pecuniary externalities: distributive externalities that arise from incomplete insurance markets and collateral … externalities that arise from price-dependent financial constraints. For both types of externalities, we identify three sufficient … pecuniary externalities. We demonstrate how to employ our framework in a number of applications. Whereas collateral …

externalities. First, an undercapitalized country borrows too much since each firm does not internalize that an increase in …

providing new evidence helpful for discriminating between different types of externalities. We investigate four-digit level … most important factor in the transmission of externalities. This suggests that transactions externalities accruing … primarily to the seller, and/or activity-driven demand externalities are significant for explaining the short-run behavior of …