search query: @indexterm internal markets / total: 21
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| Author: | Cres, H. Ghiglino, C. Tvede, M. |
| Title: | Externalities, internalization and fluctuations |
| Journal: | International Economic Review
1997 : MAY, VOL. 38:2, p. 465-477 |
| Index terms: | CONSUMPTION EXTERNALITIES INTERNAL MARKETS |
| Language: | eng |
| Abstract: | This paper studies how internalization of externalities affects intertemporal economies with respect to stability and fluctuations. The framework is simple, a stationary one-comodity, one-consumer overlapping-generations model in which consumers live for two periods. The utility function of each consumer is assumed to depend on his proper consumption as on the consumption of other consumers alive, in order to model the external effects between generations. The paper shows that the opening of the external markets can result in changes in stability properties and cycles. |
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