because of pecuniary externalities that are triggered during financial amplification. The paper develops an externality … pricing kernel that quantifies the state-contingent magnitude of such externalities and provides welfare-theoretic foundations …

possible explanations are offered, including the roots of environmental economic theory in the theory of externalities, the …

externalities …

This paper analyzes the impact of consumption externalities on the quot;Pigouvian ranking,'quot; according to which the … second-best level of public good provision is smaller than the first-best level. Consumption externalities introduce …

externalities. Samuelson (1954) laid out the conditions for optimal pure public goods provision, but noted that free-riding (the …, government intervention is unnecessary. Under the conditions underlying the Coase Theorem, externalities would be self … to the controversy here by describing a previously unexplored relationship between externalities, public goods, and …

In this paper, we study regulation of externalities involving many small-scale polluters, where the damages from …