A simple general equilibrium model of a small open economy has been employed to show that even the complete and competitive market may fail to produce a Pareto efficient outcome under the condition of changing technology. Price taking firms can affect prices they face, NOT what others face, by...

In this paper, the problem of negotiating an abatement agreement is approached from the perspective of the theory of public goods in a general equilibrium context. Such an approach has the appeal of simultaneously dealing with both equity and efficiency issues. Three major difficulties in...