Simandan, Radu - In: Theoretical and Applied Economics 7(502) (2006) 7(502), pp. 97-100
An externality exists whenever a transaction creates a cost or a benefit for a party not directly involved. Pollution …, such as smoke emitted into the air or sewage poured into the water is an externality. In this paper I analyze the …-classicals are concerned about efficiency and they propose some forms of government intervention in order to alleviate pollution …