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Economy Of Specialization And Diseconomy Of Externalities

In: Inframarginal Contributions To Development Economics

Author

Listed:
  • C. Y. Cyrus Chu

    (National Taiwan University, R. O. C. and Academia Sinica, China)

  • C. Wang

    (National Taiwan University, R. O. C.)

Abstract

The following sections are included:IntroductionA Two-Person Two-Sector ModelSpecificationSpecialization and transactionThe non-convexity of the PPFPossible Equilibrium ScenariosScenario 1: AutarkyScenario 2: Division of labor without externality remedyScenario 3: Division of labor with externality remedyThe Impact of a Pigovian TaxExtensions and DiscussionOther related researchAn extreme example: The prohibition of alcohol in the USMore general institutional changesReferences

Suggested Citation

  • C. Y. Cyrus Chu & C. Wang, 2006. "Economy Of Specialization And Diseconomy Of Externalities," World Scientific Book Chapters, in: Christis Tombazos & Xiaokai Yang (ed.), Inframarginal Contributions To Development Economics, chapter 15, pages 391-406, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789812774255_0015
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