Skip to Main content Skip to Navigation
Journal articles

Cross-sectoral pollution externalities and multiple equilibria

Abstract : In familiar models, a decrease in the friction facing mobile factors (e.g., lowering their adjustment costs) increases a coordination problem, leading to more circumstances where there are multiple equilibria. We show that a decrease in friction can decrease coordination problems when a production externality arises from a changing stock, e.g. of pollution or knowledge. In general, the relation between the amount of friction that mobile factors face and the likelihood of multiple equilibria is non-monotonic.
Document type :
Journal articles
Complete list of metadata

Cited literature [21 references]  Display  Hide  Download
Contributor : Elisabeth Lhuillier Connect in order to contact the contributor
Submitted on : Thursday, February 6, 2020 - 7:01:35 PM
Last modification on : Wednesday, August 5, 2020 - 3:12:30 AM
Long-term archiving on: : Thursday, May 7, 2020 - 6:10:35 PM


Karp et Paul - 2019 - Cross-se...
Files produced by the author(s)




Larry Karp, Thierry Paul. Cross-sectoral pollution externalities and multiple equilibria. Environment and Development Economics, Cambridge University Press (CUP), 2019, 24 (6), pp.624-642. ⟨10.1017/S1355770X19000147⟩. ⟨hal-02469871⟩



Record views


Files downloads