Outgroup hate, in the context of intergroup conflict, can be expressed by harming the outgroup, but also by denying it help. Previous work established that this distinction-whether the externality on the outgroup is negative or positive-has an important effect on the likelihood of outgroup hate emerging as a motivation for individual participation in intergroup conflict. The current work uses a...

and participants at a World Bank seminar, for useful comments. The views expressed here are mine and do not necessarily reflect those of the World Bank or its affiliated organizations. iii ABSTRACT Labor market integration is typically assumed to raise welfare in the absence of distortions because it allows labor to move to where returns are highest. This result is examined in a simple general ...

This study theoretically examines green portfolio standards with monetary penalties in an oligopoly market. We find that attain first-best optimality if the purpose of government is to restrict non-green products (i.e., unless negative externality gray too small), whereas they are inefficient policy tools promote products.

We examine an economy with n production sectors that interact via a production externality We nd a solution to the resulting dynamic di erential game between sectors and compare it to the cooperative solution As the number of sectors increases the limiting policy is the optimal policy without a production externality This policy is ine cient and depending on the sign of the externality between ...

It is well-known that pooled insurance coverage can induce people to make inefficiently low investments in self-protective activities. We identify another ex ante moral hazard that runs in the opposite direction. Lower levels of self-protection and the associated chronic conditions and behavioral patterns such as obesity, smoking, and malnutrition increase the incidence of many diseases and con...

Many western European housing policies have tried to increase the residential mix of advantaged and disadvantaged groups. Unfortunately, policymakers have given little consideration to how these groups will interact as neighbours. There are numerous theoretically grounded mechanisms by which the social mix of a neighbourhood may influence socio-economic outcomes of its residents. These mechanis...

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...

Two percent of women in the US suffer from intimate partner violence annually, with poor and minority women disproportionately affected. I provide evidence of an important negative externality associated with domestic violence by estimating a negative and causal relationship between violence during pregnancy and newborn health, exploiting variation in the enforcement of laws against domestic vi...

Consumerism arises when patients acquire and use medical information from sources other than their physicians. This practice has been hailed as a means of improving quality. This need not be the result. Our theoretical model identifies a channel through which consumerism may reduce quality: consumerist patients place additional demands on their doctors’ time, thus imposing a negative externalit...