Dynamic externalities and policy coordination

Manjira Datta, Leonard J. Mirman

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

The paper introduces trade into dynamic models with externalities and capital accumulation, and evaluates the efficiency of the Cournot-Nash equilibrium. It considers mixed economies characterized by a blend of strategic and nonstrategic sectors. Also, there are two sources of interdependence: the existence of production externalities and the endogenous determination of market prices. It is shown that policy coordination is not needed when preferences are the same. In this case, the production externalities are internalized, so that an inefficient solution becomes the efficient integrated world equilibrium due to trade.

Original languageEnglish (US)
Pages (from-to)44-59
Number of pages16
JournalReview of International Economics
Volume8
Issue number1
StatePublished - Feb 2000

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trade paper
market price
capital accumulation
interdependence
efficiency
economy
externality
co-ordination
policy
world

ASJC Scopus subject areas

  • Development
  • Geography, Planning and Development

Cite this

Dynamic externalities and policy coordination. / Datta, Manjira; Mirman, Leonard J.

In: Review of International Economics, Vol. 8, No. 1, 02.2000, p. 44-59.

Research output: Contribution to journalArticle

Datta, Manjira ; Mirman, Leonard J. / Dynamic externalities and policy coordination. In: Review of International Economics. 2000 ; Vol. 8, No. 1. pp. 44-59.
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