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Existence and Efficiency of a Price-Taking Equilibrium in an Economy with Public Goods, Externalities, and Property Rights: A Coasian Approach

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dc.contributor.author Smith, Stefani C.
dc.contributor.author Conley, John P.
dc.date.accessioned 2004-04-01T19:57:13Z
dc.date.available 2004-04-01T19:57:13Z
dc.date.issued 2004-01
dc.identifier.citation Conley, John P. and Stefani C. Smith. "Existence and Efficiency of a Price-Taking Equilibrium in an Economy with Public Goods, Externalities, and Property Rights: A Coasian Approach." Working Paper No. 04-W03. Dept. of Economics, Vanderbilt University. Nashville, TN, Jan. 2004. en
dc.identifier.uri http://hdl.handle.net/1803/8
dc.description.abstract We consider a general equilibrium economy with public goods and externalities. Following Boyd and Conley (1997), we treat externality markets directly instead of indirectly through Arrovian commodities. Because such direct externality markets are not subject to the nonconvexities that Starrett (1972) shows are fundamental to Arrow's externality markets, this new approach admits the use of largely standard methods to prove welfare and existence theorems in an economy with externalities. We extend the Boyd and Conley model to allow firms to benefit from public goods and be damaged by externalities, and to allow consumers to produce externalities. We state a first welfare theorem and prove the existence of a competitive equilibrium. Taken together, this can be viewed as a type of general equilibrium Coase Theorem. Considered as a special case, these theorems also represent a significant generalization of existing results for pure public goods economies. en
dc.format.extent 244708 bytes
dc.format.mimetype application/pdf
dc.language.iso en_US
dc.publisher Vanderbilt University. Dept. of Economics en
dc.relation.ispartofseries Working Paper
dc.subject pollution permits en
dc.subject Externalities en
dc.subject Arrow commodities en
dc.subject Coase Theorem en
dc.subject H23 en
dc.subject H41 en
dc.subject Lindahl Equilibrium en
dc.subject property rights en
dc.title Existence and Efficiency of a Price-Taking Equilibrium in an Economy with Public Goods, Externalities, and Property Rights: A Coasian Approach en
dc.type Working Paper en


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