We study optimal corrective taxation in the alcohol market. Consumption generates negative externalities that are non … externalities, then varying tax rates on different products can lead to welfare gains. We study this problem in an optimal tax … externalities are amongst heavy drinkers. A sufficient statistics approach is informative about the direction of reform, but not …

externalities. Policy effectiveness depends on whether the measure achieves large reductions in the most socially costly consumption …

regulation. We illustrate our results in applications to financial regulation with environmental externalities, shadow banking …

environmental externalities such as pollution. We argue that consumer contracts generate externalities by overwhelming consumers …

A principal's production decision imposes a negative externality on an agent. The principal may be a pollution … pollution. Then the agent privately learns the disutility of pollution. Finally, a production level and a transfer payment are … standard adverse selection models of pollution claim settlements, there may thus be too much pollution compared to the first …

We show that in almost every economy with separable externalities, every competitive equilibrium can be Pareto improved … in economies with externalities. It shows that policy makers should look for good tax packages that help everybody …

We show that in almost every economy with separable externalities, every competitive equilibrium can be Pareto improved … in economies with externalities …