market equilibrium is not optimal because of social externalities. We determine the value of the subsidy to interactions that …

This paper examines the role of regional aggregation in measuring agglomeration externalities. Using Dutch … agglomeration externalities at a higher spatial scale. We quantify subgroup differentials and find that high-educated workers have … agglomeration externalities twice as high as low-educated workers. We show that workers who lose their job in denser LLMs experience …

density on productivity but we also consider many other local determinants supported by theory. Empirical issues are then …

taxes under a balanced-budget rule in the presence of consumption externalities of the "keeping up with the Joneses" type … eliminating belief-driven cyclical fluctuations. Moreover, for higher values of consumption externalities, saddle path stability …

selection. Building on their framework we demonstrate that externalities between agents - an agent's utility upon accepting a … when the size of the externalities is arbitrarily small. Our result highlights the degree of control a principal has over …

We show that downsizing has substantial externalities on the health of workers who remain in the firm. To this end, we … health externalities due to downsizing imply non-negligible cost for firms, and that wage cuts may have similar effects …