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Introduction to Economics

C/E/385. Externalities and Coase Theorem

WORDS:
2400
DATE:
2009
PRICE:
29.99 GBP

The paper looks at the externalities present in the economy as the effects on the third parties that are not involved in economic transactions. It is explained that externalities can be either negative, such as air pollution, or positive, such as education. Efficient outcomes of these externalities are considered outlining the arguments for and against state intervention in the economy and using the Coase theorem for the purpose of the analysis.

 

KEYWORDS: Externalities, Coase theorem, transaction costs, efficiency, Pareto,

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