On the definition of externality as a missing market - Archive ouverte HAL Access content directly
Journal Articles European Journal of the History of Economic Thought Year : 2017

On the definition of externality as a missing market

(1)
1

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.
Fichier principal
Vignette du fichier
ejhet Berta 2017 HAL.pdf (406.53 Ko) Télécharger le fichier
Origin : Files produced by the author(s)
Loading...

Dates and versions

hal-02095696 , version 1 (10-04-2019)

Identifiers

Cite

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

Altmetric

Share

Gmail Facebook Twitter LinkedIn More