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commit to contracts, virus externalities are local, and competitive equilibria are efficient. The Second Welfare Theorem also … their infection status. If society cannot control virus exposure, then virus externalities are global and competitive … externalities and result in inefficiently high economic activity. If agents cannot commit, competitive equilibria are inefficient …
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I discuss recent contributions to the theory of group formation and the provision of jointly consumed public goods and services. I highlight the distinction between models of pure group formation, and models where the formation of groups and the sharing of public goods are constrained by a...
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externalities in the form of inter-regional capital tax competition and technical externalities in the form of inter … and technical externalities but free-ride on the transfer system. Efficiency can be achieved by introducing a second …
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