Motivated by Feder’s two-sector model concerning exports and growth, this article intends to propose a dynamic framework, which bases on the production function theory and consists of two versions of the two-sector (the financial sector and the real sector) model, for analyzing the interrelation between financial development and economic growth in terms of intersectoral externalities. The appro...

The existence of a theoretical market solution to the problem of externalities has been generally accepted since the seminal contribution of Coase. 1 In the absence of transaction costs, the potential for bargaining between concerned parties has the effect of internalizing any externality. The burden of legal liability for external effects does not therefore affect the attainment of Pareto effi...

Positive externalities characterize the consumption of a majority of information goods such as software and online content services including virtual communities. We show that network externality is critical for the market segmentation and product line structure of such information goods. A monopoly of multiple existing products offers exactly two distinct qualities. Essential for such a limite...

the purpose of the study was to verify, through the use of an experimental method, the assumption that the ‘economic human’ pays more attention to the externality he/she causes as the strength of externality increases. we used a social-experiment design within an undergraduate classroom to test assumptions, using statistical method. a lakeside plant was used as an example. our results confirmed...

This study aims to identify and analyze the positive negative externalities of thexistence tourism destination for local community. In detail, in thistudy are form social benefits as externality costs felt bthird parties due economic activities that occur related tourismdestinations externality. Moreover, this study, selected tourismdestination is The Lodge Maribaya which located sub-district L...

The ecological literature suggests that biodiversity reduces the variance of ecosystem services. Thus, conservative biodiversity management has an insurance value to risk-averse users of ecosystem services. We analyze a conceptual ecological-economic model in which such management measures generate a private benefit and, via ecosystem processes at higher hierarchical levels, a positive external...

The concept of the core is reformulated to handle externality problems where the total payoff for a coalition depends upon the actions of the players outside the coalition. A deviating coalition has rational expectations of the outsiders’ individual attempts to stop the deviation and their coalitional response if the deviaiton cannot be stopped, with the coalitional response itself a core solut...

Altruism or ‘regard for others’ can encourage self-restraint among generators of negative externalities, thereby mitigating the externality problem. We explore how introducing impure altruism into standard regulatory settings alters regulatory prescriptions. We show that the optimal calibration of both quantitative controls and externality taxes are affected. It also leads to surprising results...

Terror management theory asserts that death fear (fear of annihilation) is buffered by self-esteem and beliefs in literal and symbolic immortality achieved through participation in the cultural system. The aims of this study were to determine how variables suggested by the theory were related to fear of death measures. Participants were 123 Black and 265 White elders aged 60 to 100 years; they ...

This paper concerns income taxation, commodity taxation, production taxation and public good provision in a multi-jurisdiction framework with transboundary environmental damage. We assume that each jurisdiction is large in the sense that its government is able to influence the world-market producer price of the externality-generating commodity. The decision-problem facing the government in each...