哈佛大学MILLER教授为MWG写的高微笔记 (8).pdfVIP

Chapter 8 Externalities and Public Goods 8.1 What is an Externality? We just showed that competitive markets result in Pareto optimal allocations — that is the market acts to make sure that those who value goods the most receive them, and those that can produce goods at the least cost produce them, and there is no way that everybody in society could be made better off. This gave us the first and second welfare theorems — the market allocates commodities efficiently, and any efficient allocation can be derived by a market with suitable ex ante transfers of wealth. Now we will take a