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2 votes

Are ALL externalities inefficient?

Pareto efficiency and inefficiency, as Michael Greinecker comments, are properties of allocations of resources. An allocation is efficient if there is no alternative allocation which makes someone ...
Adam Bailey's user avatar
  • 8,519
1 vote

What precisely is bad about externalities?

In particular, why are externalities bad? This is a non-economics question. Economics cannot say if something can be good or bad. For that you need moral philosophy. For example, if some economic ...
1muflon1's user avatar
  • 56.8k

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