Economics of Involuntary Transfers

I: A Selected Review of the Literature.- The Controversy over Pigou’s Increasing Cost Theorem.- Between Controversies.- The Controversy over Coase’s Neutrality Theorem: the Case for Coase.- The Pigovian Revival: the Case against Coase.- Recent Developments.- Summary and Prelude.- II: A Theory of Involuntary Transfers.- Three Kinds of Jointness.- Sending (1).- Transport Jointness (2).- Receiving (3).- Defensive Strategies.- Formal Model.- Special Case I. Pure Pollution.- Special Case II. Pure Congestion.- Pareto Optimality Conditions.- Special Case III. Neoclassical Equilibrium.- Special Case IV. Samuelson’s Public Good.- Consumer-consumer and Consumer-producer Transfers.- General Case.- The Geometry.- Economic Incentives.- III: Air Pollution in London, an Exemplary Involuntary Transfer.- Setting of the Model.- The Naive Model.- Non-linearities and Lag Structure.- Conclusions and Further Research.- List of Symbols.