Local Home Environment Externality is a Source of Indeterminacy

Externality Is a Source of Indeterminacy

Admiration is a Source of Indeterminacy

Can consumption externalities be a source of indeterminacy? The answer is negative in conventional wisdom. In this paper we show that consumption externalities establish local indeterminacy if the degree of decreasing impatience is sufficiently large. Dynamic models with indeterminacy are valuable as they tend to explain economic fluctuations without relying on exogenous shocks and question int...

The Tragedy of your Upstairs Neighbors: When is the Home-Sharing Externality Internalized?

A common critique of home-sharing platforms is that they enable hosts to impose costs on their neighbors. We consider four potential public policy responses that differ in whether the decision right to host is allocated to: (1) individual tenants, (2) building owners, (3) cities, and (4) a social planner. We find that (2) and (4) are equivalent, with (3) leading to too little hosting, and (1) t...

Linguistic Indeterminacy as a Source of Errors in Tagging

Most evaluations of part-of-speech tagging compare the utput of an automatic tagger to some established standard, define the differences as tagging errors and try to remedy them by, e.g., more training of the tagger. The present article is based on a manual analysis of a large number of tagging errors. Some clear patterns among the errors can be discerned, and the sources of the errors as well ...

Growth Incentives to Invest in a Network Externality Environment

Firms that operate in the telecommunications industry often have to make large and risky investments in digital infrastructure. This paper examines how firm size affects the incentive to invest in infrastructure projects in industry environments that incur substantial network externalities. We suggest that, in the presence of network externalities, a firm's rate of growth first declines and the...