Definitions for externality
ˌɛk stərˈnæl ɪ tiex·ter·nal·i·ty

Princeton's WordNetRate this definition:0.0 / 0 votes

1. outwardness, externalitynoun

   the quality or state of being outside or directed toward or relating to the outside or exterior

   "the outwardness of the world"

WiktionaryRate this definition:0.0 / 0 votes

1. externalitynoun

   The state of being external or externalized.

2. externalitynoun

   A thing that is external relative to something else.

3. externalitynoun

   An impact, positive or negative, on any party not involved in a given economic transaction or act.

WikipediaRate this definition:0.0 / 0 votes

1. Externality

   In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced goods involved in either consumer or producer market transactions. Air pollution from motor vehicles is one example. The cost of air pollution to society is not paid by either the producers or users of motorized transport to the rest of society. Water pollution from mills and factories is another example. All consumers are all made worse off by pollution but are not compensated by the market for this damage. A positive externality is when an individual's consumption in a market increases the well-being of others, but the individual does not charge the third party for the benefit. The third party is essentially getting a free product. An example of this might be the apartment above a bakery receiving the benefit of enjoyment from smelling fresh pastries every morning. The people who live in the apartment do not compensate the bakery for this benefit.The concept of externality was first developed by economist Arthur Pigou in the 1920s. The prototypical example of a negative externality is environmental pollution. Pigou argued that a tax, equal to the marginal damage or marginal external cost, (later called a "Pigouvian tax") on negative externalities could be used to reduce their incidence to an efficient level. Subsequent thinkers have debated whether it is preferable to tax or to regulate negative externalities, the optimally efficient level of the Pigouvian taxation, and what factors cause or exacerbate negative externalities, such as providing investors in corporations with limited liability for harms committed by the corporation.Externalities often occur when the production or consumption of a product or service's private price equilibrium cannot reflect the true costs or benefits of that product or service for society as a whole. This causes the externality competitive equilibrium to not adhere to the condition of Pareto optimality. Thus, since resources can be better allocated, externalities are an example of market failure.Externalities can be either positive or negative. Governments and institutions often take actions to internalize externalities, thus market-priced transactions can incorporate all the benefits and costs associated with transactions between economic agents. The most common way this is done is by imposing taxes on the producers of this externality. This is usually done similar to a quote where there is no tax imposed and then once the externality reaches a certain point there is a very high tax imposed. However, since regulators do not always have all the information on the externality it can be difficult to impose the right tax. Once the externality is internalized through imposing a tax the competitive equilibrium is now Pareto optimal. For example, manufacturing activities that cause air pollution impose health and clean-up costs on the whole society, whereas the neighbors of individuals who choose to fire-proof their homes may benefit from a reduced risk of a fire spreading to their own houses. If external costs exist, such as pollution, the producer may choose to produce more of the product than would be produced if the producer were required to pay all associated environmental costs. Because responsibility or consequence for self-directed action lies partly outside the self, an element of externalization is involved. If there are external benefits, such as in public safety, less of the good may be produced than would be the case if the producer were to receive payment for the external benefits to others.

ChatGPTRate this definition:0.0 / 0 votes

1. externality

   An externality is a consequence of an economic activity experienced by unrelated third parties; it can be either positive or negative. It occurs when the activities of individuals or organizations have an indirect impact on others who are not involved in these activities. They are called externalities because they are effects not accounted for in the costs and benefits of the activities that cause them, and are outside of the direct control of those involved in such activities.

Webster DictionaryRate this definition:0.0 / 0 votes

1. Externalitynoun

   state of being external; exteriority

2. Externalitynoun

   separation from the perceiving mind

WikidataRate this definition:0.0 / 0 votes

1. Externality

   In economics, an externality is a cost or benefit which results from an activity or transaction and which affects an otherwise uninvolved party who did not choose to incur that cost or benefit. For example, manufacturing activities which cause air pollution impose health and clean-up costs on the whole society, while the neighbors of an individual who chooses to fire-proof his home may benefit from a reduced risk of a fire spreading to their own houses. If external costs exist, such as pollution, the producer may choose to produce more of the product than would be produced if he were required to pay all associated environmental costs. If there are external benefits, such as in public safety, less of the good may be produced than would be the case if the producer were to receive payment for the external benefits to others. For the purposes of these statements, overall cost and benefit to society is defined as the sum of the imputed monetary value of benefits and costs to all parties involved. Thus, it is said that, for goods with externalities, unregulated market prices do not reflect the full social costs or benefit of the transaction.

The Nuttall EncyclopediaRate this definition:0.0 / 0 votes

1. Externality

   the name for what is ab extra as apart from what is ab intra in determining the substance as well as form of things, and which in the Hegelian philosophy is regarded as working conjointly with the latter.

Matched Categories

1. • Position

How to pronounce externality?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say externality in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of externality in Chaldean Numerology is: 9

2. Pythagorean Numerology

   The numerical value of externality in Pythagorean Numerology is: 9

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References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=externality
2. ^ Wiktionary
   https://en.wiktionary.org/wiki/Externality
3. ^ Wikipedia
   https://en.wikipedia.org/wiki/Externality
4. ^ ChatGPT
   https://chat.openai.com
5. ^ Webster Dictionary
   https://www.merriam-webster.com/dictionary/externality
6. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=externality
7. ^ The Nuttall Encyclopedia
   https://www.gutenberg.org/cache/epub/12342/pg12342-images.html#Externality