Thus, we could estimate the accident externality
conditional on the individual's own driving.
On this latter point, Coase is once again highly critical of the "blackboard economics" approach of modern welfare economies and economists who too quickly see an externality
as a result of market failure "requiting corrective government action [that] is, in fact, often the result of government action" (Coase 1960: 28).
from A to B creates a negative externality
of $50 for C.
Projects in which there is a positive (negative) externality
are on the right (left) side of the 45 degree line.
position to gather information about the externality
13) There will be a similar negative externality
if such efforts interfere with victims' ability to form profitable social networks, as in Dharmapala and Garoupa (2004).
There is no externality
associated with the consumption of the good.
In the end, it is the task of regulators, not investors, to address this externality
A positive externality
exists when some of the benefits accrue to those other than the purchaser.
Finally, even if a project is expected to create an externality
that a local government values, competition from other jurisdictions will force a transfer of some of the benefits to the investing firm.
theory is used to claim that markets fail.
The author's hypothesis is "that the perception of externality
, that the world is external to and independent of us, is merely the subjective reflection of our original sin, the preconception of autonomy, what we call the ego" (p.