It is generally the unintended, indirect consequence of everyday economic activities. Externalities occur when the transactions between two parties affect the existence and well-being of a third.

Sometimes these indirect effects are tiny. But when they are large they can become problematic—what economists call externalities. Externalities are among the main reasons governments intervene in the ...

Sometimes these indirect effects are tiny. But when they are large they can become problematic—what economists call externalities. Externalities are among the main reasons governments intervene in the ...

I am researching the impact of climate change and environmental externalities in developing countries. One of the projects that I am working on right now tries to estimate the effect of flooding on ...