A Pigouvian tax, in the form of an entrance fee or a toll, has been proposed to be an efficient resolution of a congestion externality. This proposition is founded on the theoretical basis of the profit maximization principle. We, however, have not found literature that examines a Pigouvian tax...

We assume that individuals can fully insure themselves against cross-country shocks, but not against individual-specific shocks. We consider two particular models of limited risk-sharing: domestically incomplete markets (DI) and private information-Pareto optimal (PIPO) risk-sharing. For each...

We present versions of the two fundamental welfare theorems of economics for exchange economies with a countable number of agents and an infinite dimensional commodity space. These results are then specialized to the overlapping generations model.