How Bad Can Externalities Be?
Let’s begin by considering the most intractable externality case and ask: How bad can consumption externalities be? The worst possible situation imaginable requires triple indexing of X,
, with
entering the utility function of each person h:
refers to the consumption (supply) of good (factor) ...
Get Public Finance, 4th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.