General equilibrium with externalities: A computational method and urban applications

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Abstract

Many problems of interest to urban economists involve economies with externalities in production or consumption. This paper explains how these problems can be described in such a way that the Scarf Algorithm for the computation of equilibrium prices can be applied. Several examples of applications to economies with prejudice, discrimination, and pollution are given. © 1980.

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King, A. T. (1980). General equilibrium with externalities: A computational method and urban applications. Journal of Urban Economics, 7(1), 84–101. https://doi.org/10.1016/0094-1190(80)90028-5

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