Alternatively, we could discuss a rancher who stops his cattle from roaming as conferring on the farmer the positive externality
of preserved crops.
8) In addition, it has been widely accepted that without governmental intervention, firms underinvest in R&D because they internalize exclusively only a part of its benefits; R&D produces a positive externality
in knowledge spillovers that can be used by others.
would be no positive externality
for consumers if the acquirer could
Taking all above positive externality
effects together, what is the total effect of urban agglomeration on incomes?
On the other hand, widespread hatred of the targeted group would imply a positive externality
from hate crime, because other people who share the perpetrator's hatred will also derive utility from the harm he inflicts on the victim, or a hate crime might generate a smaller negative externality than other crimes, because people outside the target group do not feel directly threatened.
This allegedly occurs because while the lower price is a negative externality for the horse breeders, buggy makers, and blacksmiths, it creates a positive externality
for their customers (because the customers can now purchase horses and buggies at a lower price).
The positive externality
argument is perhaps the most commonly cited justification for government involvement in education (Poterba, 1996).
The general increase in wealth created by those who pursue material gain can be thought of as a positive externality
Therefore, the number of advertisements represents a positive externality
for ad-lovers and a negative externality for ad-avoiders; besides, readers or viewers generate a positive externality
on advertisers, as an advertisement has a higher impact if the audience is larger.
Generalising the original work of Balassa (1978), Feder (1982) measured the effect of positive externality
of export sector on non-export sector and the productivity differential favouring the export sector in a typical neoclassical production function.
I have done less extensive research on this, but my preliminary observation is that the positive externality
argument is debatable even at the primary and secondary level.
They argue that it is the positive externality
generated from firm clustering in a specific location that attracts a firm to a specific location (Nachum 2000).