As illustrated in Figure 2(a), externality analysis is generally used to ascertain whether a party should subsidize or bolster production of an underproduced good with positive externalities
, and charge or diminish the production of a good with negative externalities.
In contrast, we could describe positive externalities
as benefits that an actor's decisions confer on third parties--benefits that, again, the actor is unlikely to account for in his decision-making, as he does not capture those benefits for himself.
event will its bid impound the real positive externalities
Public Private Interplay for Next Generation Access Networks: Lessons and Warnings from Japan's Broadband Success"), who discusses the characteristics of Japan broadband buildouts by highlighting its main challenges and putting the attention on factors that could potentially reduce the positive externalities
of a European fast-tracking broadband deployment.
In fact, Korinek verges on such an idea when he writes: "If a parent company injects additional liquidity into its emerging market subsidiary during crises, then the resulting capital inflows entail positive externalities
that would call for a subsidy, since they raise aggregate demand and mitigate financial amplification" (2010b, 33 n.
More specifically, does it only concern the internalization of positive externalities
or does it also internalize negative externalities, acting as a filter, a censor of media information?
58) In the case of innovation, positive externalities
produce positive externalities
would be as effective as, or better than,
Class action lawsuits, although often maligned as frivolous and socially wasteful, can have positive externalities
by curbing aggressive reporting behavior of peer firms," the paper by Dr.
The drivers are many and include the positive externalities
of regional turmoil, rising oil prices, a more mature business and financial leadership, and the empowering recognition that the UAE did indeed survive the blows of an unprecedented international financial crisis.
Subsidies for homeownership are often justified by economists because of the positive externalities
that allegedly result: local physical amenities and higher civic involvement.
There is a direct effect whereby production by an agent creates positive externalities
on the production decision of other agents: More producers make trade easier.