presence of externalities. The paper employs a two-period, open economy framework in which the central government allocates its … externalities. This is not only because debt relief that expands the availability of current resources has positive direct income …

The paper emphasizes the role of institutions and incentives in the presence of externalities. An economy with multiple … effective institutions exist for overcoming coordination failure. External financing may weaken incentives for adjustment over … that strengthen incentives to provide effort. Uncertainty regarding future taxes reduces present effort and the …

Country incentives to participate in cooperative arrangements which either fully or partially internalize climate … change externalities from carbon emissions involve critical asymmetries. Small countries trade off own country costs of … country incentives to participate in carbon emission limitation negotiations using a micro global warming structure related to …

create asymmetric incentives because increases in externalities remain unpriced. This paper examines implications of such …Many countries use substantial public funds to subsidize reductions in negative externalities. However, such subsidies … asymmetric subsidy incentives by using a regression discontinuity design in California's electricity rebate program that provided …

importance in controlling harmful externalities. I compare the tax and liability here in theory and suggest that the conclusions … harmful externalities, its actual use has been limited, mainly to the domain of pollution. Liability, in contrast, has great … factors are emphasized in the analysis: inefficiency of incentives under taxes when, as would be typical, it would be …

Taxation and liability are compared here as means of controlling harmful externalities. It is emphasized that liability … has an advantage over taxation: inefficiency of incentives arises under taxation when, as would be typical, it would be … impractical for a tax to reflect all variables that significantly affect expected harm, whereas efficiency of incentives under …

amount of debt financing, resulting in a two dimensional war of attrition. Debt financing increases incentives to exit, which … costs of subsidizing corporate debt from the existing literature. Our theory also sheds light on why the IRS considers …

outcomes are inefficient. In the case of negative externalities, Pigouvian taxes are one way to correct this market failure …