Abstract
Diamond and Mirrlees (1973) provided conditions to ensure that a good generating external economies (diseconomies) should increase (decrease) in aggregate quantity when moving from a competitive equilibrium to any Pareto optimum. We prove that the same conditions ensure that each individual's equilibrium quantity of this good decreases as its price increases.
Original language | English |
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Pages (from-to) | 111-115 |
Number of pages | 5 |
Journal | Economics Letters |
Volume | 1 |
Issue number | 2 |
DOIs | |
State | Published - 1978 |