Externality

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Externality

The cost or benefits of a transaction to parties who do not directly participate in it. Externality can be either positive or negative. For example, a merger can lead to higher share prices and bonuses for employees, benefiting shareholders and employees at the two companies merging, This can create wealth and positively impact a community. On the other hand, the merger can drive a competitor out of business, which results in layoffs and reduced wealth, which can hurt a community. Externality is also called spillover or the neighborhood effect. See also: External benefit, External cost.
References in periodicals archive ?
Assessing "neighborhood effects": Social processes and new directions in research.
The ecological reality of the neighborhood effect belies the core ideal of the American dream--the belief that, wherever we come from and whoever our parents are, we can succeed with hard work and determination.
Reflections about neighborhood effect and youth social exclusion in European cities
And as has been extensively documented in the scholarly literature, in the US the quality of schools is largely determined by the very neighborhood effect that Sampson makes so much of, wherein low-income communities of color are spatially and racially concentrated, thus radically affecting their life chances (see Duncan and Murname, 2011).
Sampson llama a este fenomeno <<efecto barrio>> (neighborhood effect).
As argued by Lopez-Bazo (2002), Overman and Puga (2002) and Niebuhr (2003), these two effects can be characterized as the neighborhood effect variable and the spillover effect variable, respectively.
TABLE 4 Neighborhood Data By Zip Code for New York City Variable Description Source %5YRS-ND (a) Neighborhood effect Section 3 %2YRS-ND (a) Neighborhood effect Section 3 %MASTERS-ND (a) Neighborhood effect Section 3 ELEM SCHOOLS # of elementary schools NYC DOE Report Card Data VCRIMES Violent crimes per 10,000 NY Ofc.
A number of scholars have formally modeled this public school finance neighborhood effect and its connection to residential segregation.
For example, suppose that neighborhood effects operate through adult role models.
Although a fairly large cross-disciplinary literature on neighborhood effects has emerged over the last 15 years, the empirical findings are not robust to data issues, outcome measures, and estimation techniques.(1) The lack of consistent evidence could stem from a number of factors.
A number of neighborhood amenity variables control for other neighborhood effects. They include the presence of a neighborhood playground (NPLGRD), a neighborhood tennis court (NTENNIS), a neighborhood pool (NPOOL), a neighborhood jogging trail (NJOG), a basketball court (NCOURT), a golf course (NGOLF), a clubhouse (NCLUBH), and a neighborhood greenbelt (GBELT).
"The Neighborhood Effects of Foreclosure." Journal of Geographical Systems, 11(4), 2009, 317-22.

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