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W171520250 abstract "In an intertemporal Arrow-Debreu economy with a continuum of agents, suppose that the auctioneer sets prices while the government institutes optimal lump-sum transfers period by period. An earlier paper showed how subgame imperfections arise because agents understand how their current decisions such as those determining investment will influence future lump-sum transfers. This observation undermines the second efficiency theorem of welfare economics and makes history a widespread externality. A two-period model is used to investigate the constrained efficiency properties of different kinds of equilibrium. Possibilities for remedial policy are also discussed." @default.
W171520250 created "2016-06-24" @default.
W171520250 creator A5055671611 @default.
W171520250 date "2007-07-01" @default.
W171520250 modified "2023-09-27" @default.
W171520250 title "History : sunk cost or widespread externality? : second Arcelli lecture at the University of Piacenza, April 2007" @default.
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