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| Gang Li and Akihiko Yanase |
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| ''On the Production Efficiency of Full Employment under Production Externalities'' |
| ( 2016, Vol. 36 No.4 ) |
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| We address whether it is efficient for all factors of production to be fully employed, even in the presence of
production externalities, by considering two general formulations of production externalities categorized by
source: output-generated production externalities and input-generated ones. Our answer is affirmative for the
former case, while it could be negative for the latter. |
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| Keywords: Production efficiency, Full employment, Output-generated production externalities, Input-generated production externalities |
JEL: D6 - Welfare Economics: General
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| Manuscript Received : Jul 07 2016 | | Manuscript Accepted : Dec 21 2016 |
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