Type
Article
Title
Externalities, internalization and fluctuations
In
International Economic Review
Author(s)
CRÈS Hervé - (Author)
GHIGLINO Christian - Department of Economics (Author)
TVEDE Mich - Institute of Economics (Author)
Editor
US : Blackwell Publishing
Volume
38
Number
2
Pages
465 - 477 p.
ISSN
00206598
Abstract
EN
In this paper we introduce consumption externalities as developed by Arrow in overlapping-generations economies. We show how the internalization of externalities-through exchanges at markets for externalities-may give rise to new phenomena such as altered stability properties and fluctuations, even though it restores optimality.

BIBLIOGRAPHIC QUOTE
EXPORT