This paper examines the impact of distance-dependent spatial externalities, referred to as “edge-effect externalities”, on free-market equilibrium land use patterns. Under edge-effect externalities, maximization of production possibilities will depend on minimization of landscape fragmentation, implying that both the correct allocation and the correct arrangement of land uses will be necessary ...

This paper studies the effect of sovereign risk on capital flows from rich to poor nations in the context of a two-country model, where Foreign Direct Investment (FDI) creates positive externalities in domestic production. We show that if externalities are large, a developing country never expropriates foreign assets, and behaves as under perfect enforcement of foreigners’ property rights, jump...

The home mortgage interest deduction creates incentives to buy more housing and to become a homeowner, and the case for the deduction rests on social benefits from housing consumption and homeownership. There is little evidence suggesting large externalities from the level of housing consumption, but there appear to be externalities from homeownership. Externalities from living around homeowner...

Although a rich literature has emerged analyzing the impact of localization, urbanization, and Jacobs externalities on regional innovativeness, the findings are still contradictory. Traditional studies differ mainly in the employed data but rely on similar empirical approaches. This paper argues in favor of using in this context production frontier approaches instead of the commonly employed pr...

Human capital externalities play a central role in endogenous growth models. Many economists base their belief that Government intervention in provision of educations is essential, on those externalities. This paper tries to exploit the low levels of education and literacy rates in India, for measuring human capital externalities. Households' expenditures per capita are highly correlated with a...

Many platforms are characterized by the fact that future user arrivals are likely to have preferences similar to users who were satisfied in the past. In other words, arrivals exhibit {\em positive externalities}. We study multiarmed bandit (MAB) problems with positive externalities. Our model has a finite number of arms and users are distinguished by the arm(s) they prefer. We model positive e...

In the past decade, innovations in hydraulic fracturing and horizontal drilling have fueled a boom in the production of natural gas (as well as oil) from geological formations—primarily deep shales—in which hydrocarbon production was previously unprofitable. Impacts on US fossil fuel production and the US economy more broadly have been transformative, even in the first decade. The boom has been...

With the advent of modern telecommunications capabilities, networks are rapidly becoming a competitive necessity in a wide variety of industries. The literature on networks suggests that networks have characteristics (e.g., network externalities) not shared by many other products or services, and thus traditional explanations of product growth or diffusion may not apply. Because there have been...