Calculation of a Population Externality

Calculation of a Population Externality

It is known that when people generate externalities, a birth also generates an externality and efficiency requires a Pigou tax/subsidy on having children. The size of the externality from a birth is important for studying policy. We calculate the size of this “population externality” in a specific case: we consider a maintained hypothesis that greenhouse gas emissions are a serious problem and ...

Global Warming and the Population Externality

We calculate the harm a birth imposes on others when greenhouse gas emissions are a problem and a cap limits emissions damage. This negative population externality, which equals the corrective Pigovian tax on having a child, is substantial in calibrations. In our base case, the Pigovian tax is 21 percent of a parent’s lifetime income in steady state and 5 percent of lifetime income immediately ...

Data Externality

In economics, an externality is an indirect effect of consumption or production activity on agents other than the originator of such activity. We observe that internet is enabling the design of information services that become smarter more they are used because of the data generated in the process. We give examples from web search to make the notion of data externality concrete and propose that...

Externality Is a Source of Indeterminacy

A Differential Oligopoly Game with Sticky Prices and Environmental Externality