IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-59768-6_3.html
   My bibliography  Save this book chapter

Economic Externalities

In: The Economics of Transaction Costs

Author

Listed:
  • P. K. Rao

    (Global Development Institute)

Abstract

The issue of the uncompensated effects of one party’s actions on another is generally the source of several legal and economic problems. Historically, Pigou (1932) was among the first to address the problem, and he suggested that the damage should be assessed and paid for by the party causing such effects. Pigouvian tax in the public policy context equates the levy of tax at that level for activities such as pollution. Coase (1960), on the other hand, seeks a bargaining solution and assignment of property rights in order to solve the problem of externalities in a decentralized and efficient manner. Since Coase’s theorem has been a very important finding in the literature of economics, and since it rests on a number of explicit and implicit assumptions, it is proposed to examine almost all of the important facets of the results in this chapter.

Suggested Citation

  • P. K. Rao, 2003. "Economic Externalities," Palgrave Macmillan Books, in: The Economics of Transaction Costs, chapter 3, pages 41-59, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59768-6_3
    DOI: 10.1057/9780230597686_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-59768-6_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.