Abstract
In this paper we introduce consumption externalities as developed by Arrow in overlapping-generations economies. We show how the internalization of externalities - through exchanges at markets for externalities - may give rise to new phenomena such as altered stability properties and fluctuations, even though it restores optimality.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 465-477 |
| Number of pages | 13 |
| Journal | International Economic Review |
| Volume | 38 |
| Issue number | 2 |
| DOIs | |
| State | Published - May 1997 |
ASJC Scopus subject areas
- Economics and Econometrics