Economists often use the term "externality" to describe impacts (benefits
and costs) that are not perceived directly by the person that causes them.
For example, the congestion delay that a vehicle imposes on other road
users, and the air and noise pollution a vehicle imposes on other people,
are externality. Unpriced parking can also be considered an externality,
although some economists prefer calling it a "bundled good" when parking is
provided free by businesses. An impact that is borne/enjoyed directly by
the people that cause them is called "internal", and strategies to shift
impacts onto users (for example, by charging a congestion or emission fee,
or charging motorists directly for use of parking facilities) is called
"internalization," but I don't ever recall hearing the term 'internality'.
For more information see:
Dr. Paul M. Johnson, A Glossary of Political Economy
Terms,
(www.auburn.edu/~johnspm/gloss/index.html?http://www.auburn.edu/~johnspm/gloss),
Dept. of Political Science, Auburn University.
Todd Litman, "Introduction," Transportation Cost and Benefit Analysis
Guidebook, Victoria Transport Policy Institute (www.vtpi.org/tca), 2003.
Best wishes,
-Todd Litman
At 06:57 AM 10/17/2003 -0700, Michael Nandris wrote:
>Can anyone point me to a definition of 'internality', in its econometric
>context?
>
>Michael Nandris
>
>
>---------------------------------
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Sincerely,
Todd Litman, Director
Victoria Transport Policy Institute
"Efficiency - Equity - Clarity"
1250 Rudlin Street
Victoria, BC, V8V 3R7, Canada
Phone & Fax: 250-360-1560
Email: [log in to unmask]
Website: http://www.vtpi.org
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