The paper considers a model of an economy with after-effects: any production activity generates some subsequent expenses, like compensation of residual damages. Internalizing the after-effects in production costs at the time they are generated proves to substantially change the shape of...

The paper considers a model of an economy with after effects: any production activity generates some subsequent expenses, like compensation of residual damages. Internalizing the after effects in production costs at the time they are generated proves to substantially change the shape of...