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Free mobility has not been thought of as an effective tool to correct over- or underproduction of externalities. In this paper, we establish that foot voting can internalize the cost of negative externalities. Workers have to accept the wage and rent, however high or low they are in equilibrium,...
Persistent link: https://www.econbiz.de/10011866892
Free mobility has not been thought of as an effective tool to correct over- or underproduction of externalities. In this paper, we establish that foot voting can internalize the cost of negative externalities. Workers have to accept the wage and rent, however high or low they are in equilibrium,...
Persistent link: https://www.econbiz.de/10011790027