Externalities

Origins of the Term "Externality"

• "The term “externality” had been introduced

into economics a few years earlier by Francis Bator (1957, 42, 43) and Paul Samuelson (1957, 210) as economists began to devote some attention to their study (Medema 2020b)"

• Bator, Francis M. 1957. “The Simple Analytics of Welfare Maximization.” American

Economic Review 47 (1): 22–59.

• Medema, Steven G. 2020b. “‘Exceptional and Unimportant’? Externalities, Competitive

Equilibrium, and the Myth of a Pigovian Tradition.” History of Political Economy 52 (1): 135–70.

• Samuelson, Paul A. 1957. “Intertemporal Price Equilibrium: A prologue to the Theory of

Speculation.” Weltwirtschaftliches Archiv Bd. 79 181–221.

The Coase Theorem

• Medema, Steven G. 2020a. “The Coase Theorem at Sixty.” Journal of Economic Literature 58

(4): 1045–128.