In markets where production has adverse externalities, policy makers may wish to increase welfare by imposing a cap on … market entries. In this paper, we examine the implications that the cap has on the firms' investment equilibrium policy and … consideration of the option value triggers investment at price above the social marginal cost of production, then it is optimal to …

information is shared, externalities arise. The standard conditions for the two fundamental welfare theorems, thus, implicitly …

investment. We show that this phenomenon, well-known in the case of production caps, also applies to taxes, and occurs whether … change affects all firms. Runs accelerate investment compared with the socially optimal path, lowering welfare, and can be …

economists had done "work of high quality and great quantity in the field of taxation," the theory of public expenditure had been … inquiries. Indeed, by the mid-1980s the 'public expenditure theory' lacuna lamented by Samuelson had largely been filled with … the theories of public goods, externalities, marginal-cost cum peak-load pricing. This paper documents and attempts to …

taxation, commodity taxation, tax expenditures, externalities, public goods, capital income and wealth taxation, social …