The Econometric SocietyEdited by: Marina Halac • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Mar, 1977, Volume 45, Issue 2
https://www.jstor.org/stable/1911213
p. 329-340
Hiroaki Osana
It is shown that, in a wide class of economies with Marshallian externalities, a Pareto optimum can be sustained by a competitive equilibrium with the aid of a tax-subsidy system. The tax-subsidy system consists of commodity taxes, commodity subsidies, lump-sum taxes, and lump-sum subsidies. The model can be interpreted as describing an economy with various kinds of public goods.
December 11, 2025
We are deeply saddened by the passing of Kate Ho, the John L. Weinberg Professor of Economics and Business Policy at Princeton University and a Fellow of the Econometric Society. Kate was a brilliant IO economist and scholar whose impact on the profession will resonate for many years to come.
