On the definition of externality as a missing market

Abstract : Within the general equilibrium framework, externalities are regarded as missing markets which invalidate the first theorem of welfare economics. As witnessed by some authors’ positions in the 1970s, this definition does not highlight whether or not it is an exogenous and an unintended effect. These ambiguities raise the issue of the relation between the basic formalisation of an externality (a dependence of individual objective functions) and its economic meaning (a missing market). Finally, they also raise the more general issue of the dilution of externality in the larger notion of individual interaction.
Document type :
Journal articles
Complete list of metadatas

Cited literature [67 references]  Display  Hide  Download

https://hal.univ-reims.fr/hal-02095696
Contributor : Nathalie Berta <>
Submitted on : Wednesday, April 10, 2019 - 4:23:31 PM
Last modification on : Tuesday, April 16, 2019 - 1:28:00 AM

Files

ejhet Berta 2017 HAL.pdf
Files produced by the author(s)

Identifiers

Collections

Citation

Nathalie Berta. On the definition of externality as a missing market. European Journal of the History of Economic Thought, Taylor & Francis (Routledge), 2017, 24 (2), pp.287-318. ⟨10.1080/09672567.2016.1169304⟩. ⟨hal-02095696⟩

Share

Metrics

Record views

15

Files downloads

44