harmful externalities, its actual use has been limited, mainly to the domain of pollution. Liability, in contrast, has great … importance in controlling harmful externalities. I compare the tax and liability here in theory and suggest that the conclusions … help to explain the observed predominance of liability over taxation, except in the area of pollution. The following …

The extent of voluntary cooperation in the presence of externalities is shown as an equilibrium outcome in the supply … character of the costs resulting from externalities. The paper discusses applications including forest management, volume …

commit to contracts, virus externalities are local, and competitive equilibria are efficient. The Second Welfare Theorem also … their infection status. If society cannot control virus exposure, then virus externalities are global and competitive … externalities and result in inefficiently high economic activity. If agents cannot commit, competitive equilibria are inefficient …

Is there a way to understand why some global environmental externalities are addressed effectively whereas others are …

Bovenberg and de Mooij (1994) showed that, in the presence of preexisting distorting taxes, the optimal pollution tax … hypothesis,' which suggests that a tax on pollution can both improve the environment and reduce distortions in the tax system …

of rational addiction are crucial for the design of public policy. In particular, accounting for peer externalities …

; asymmetric information and the income of founders; production and consumption externalities from labor effort; market power and …