This paper presents an overlapping generations model of environmental externalities with a depollution technology. each agent concerned by the environmental degradation can volutary contribute in order to reduce it. Contributing to the environmental quality means financing depollution activities...

The authors construct a model in which a first mover decides on its location before it knows the identity of the second mover; joint location results in a negative externality. Contracts are inherently incomplete since the first mover's initial decision cannot be specified. The authors analyze...

Is liability law a suitable instrument for controlling externalities? The optimistic view from the law and economics literature conflicts with observed outcomes from jurisdictions relying on a tort-based procedure for controlling externalities. This discrepancy can be attributed to the fact that...

This paper studies the consequences of a private or depletable externality on free trade agreements in a general equiilibrium framework. It is shown that there always exists a stable system of free trade spaces in the world economy. This stable system can result in either non-cooperation,...

This paper constructs an overlapping generations model of pollution externality wherein individuals are altruistically linked to their offspring as in Barro (1974). It is shown that steady state consumption may be a decreasing function of the intergenerational degree of altruism. Despite...

This paper investigates the linkages between the trade sector and the manufacturing sector as a possible source of complementarities generating cumulative processes and apparent increasing returns in manufacturing firms.

We analyse the allocation of students who differ in their ability to two school types when there are peer effects (students learn more the better their classmates) and expected income after school depends also on the average productivity of peers. We derive the allocation under free school...

This paper investigates the linkages between the trade sector and the manufacturing sector as a possible source of complementarities generating cumulative processes and apparent increasing returns in manufacturing firms.

Is liability law a suitable instrument for controlling externalities? The optimistic view from the law and economics literature conflicts with observed outcomes from jurisdictions relying on a tort-based procedure for controlling externalities. This discrepancy can be attributed to the fact that...

Optimal regulation is developed for a case where heterogeneous firms expand or reduce the supply of an industry-specific public good. The sizes of the individual contributions or reductions are subject to private information, implying that external effects are present both in the firms' net...