EconPapers    
Economics at your fingertips  
 

On the definition of externality as a missing market

Nathalie Berta ()
Additional contact information
Nathalie Berta: REGARDS - Recherches en Économie Gestion AgroRessources Durabilité Santé- EA 6292 - URCA - Université de Reims Champagne-Ardenne - MSH-URCA - Maison des Sciences Humaines de Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne

Post-Print from HAL

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.

Keywords: Externality; internalisation; missing market; Arrow; market failure (search for similar items in EconPapers)
Date: 2017
Note: View the original document on HAL open archive server: https://hal.univ-reims.fr/hal-02095696
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in European Journal of the History of Economic Thought, Taylor & Francis (Routledge), 2017, 24 (2), pp.287-318. ⟨10.1080/09672567.2016.1169304⟩

Downloads: (external link)
https://hal.univ-reims.fr/hal-02095696/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02095696

DOI: 10.1080/09672567.2016.1169304

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2020-06-23
Handle: RePEc:hal:journl:hal-02095696