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Estimation and measurement of consumption externalities are still challenging problems in applied research. In this paper, externalities as Nash equilibrium are estimated using consumer demand theory and a large data set. We estimate Nash equilibrium consumption externalities in petrol budget shares of households living in a metropolitan area in UK. The reaction curves are derived from an Almost Ideal Demand System (AIDS) with externalities. A continuous set of ten year cross sections from the Family Expenditure Surveys is used. In each year, income decile cohorts are created. Results of 2SLS with Panel Data are presented after 2SLS estimates with pooling cross sections have been discussed. Results give evidence that the household petrol consumption pattern is explained by income and externality variables. We also suggest that in order to internalise the negative externality effect, households should be taxed independently of household income.

We run a field experiment to quantify the economic returns to data and informational ex-ternalities associated with algorithmic recommendation relative to human curation in the context of online news. Our results show that personalized recommendation can outperform human curation in terms of user engagement, though this crucially depends on the amount of personal data. Limited individual data or breaking news leads the editor to outperform the algorithm. Additional data helps algorithmic performance but diminishing economic returns set in rapidly. Investigating informational externalities highlights that personalized recommendation reduces consumption diversity. Moreover, users associated with lower levels of digital literacy and more extreme political views engage more with algorithmic recommendations.

This article is base on the concept "externalities" (third-party impacts), and attempts to recognize both positive and negative externalities generated by economic activities including consumption and production. The methodology of the study was quantitative, and entirely based on secondary data. the study reveals that certain benefits of tourism industry can be recognized as positive externalities. They include the creation of indirect employment opportunities, the value added to GDP from hotel and restaurant sector, cargo services, and domestic trade and infrastructure development in tourists sites. The government expenditure on education generates positive externalities to the entire society. In the Sri Lankan context, this can be seen in terms of the satisfactory level of labour productivity and increased rate of rural sector labour force participation. The study found that there is a "parallel move" of public expenditure on education and the rate of rural sector labour force participation in Sri Lanka.

[eng] Chapter 2 of this dissertation estimates the joint causal effect of highway and railway Infrastructure on the suburbanization of population in European cities. Using a unique dataset of 579 European cities from 29 European countries during the period 1961-2011, I provide evidence that an additional highway ray displaces on average approximately 9 percent of the central city population to the suburbs in Europe's cities. However, Roman and Medieval cities appear to be more resilient to this process. Indeed, this existence of historical amenities in the cities of Europe appears to provide a reasonable explanation for these differences, providing some of the first empirical evidence for Brueckner et al. ( 1999)'s theory. Chapter 3 of this dissertation tests and confirms the 'fundamental law of highway congestion' for the cities of Europe. Using different approaches, I find an elasticity of Vehicle Kilometres Travelled (VKT) with respect to highway lane km in the range of 0. 7-1. In a second stage, I estimate the effect of the increase in highway traffic on the emissions of some of the most harmful air pollutants. For nitrogen oxides, the estimated elasticity is approximately 0.10 - I.e. a ten-percent increase in highway traffic causes a one-percent increase in nitrogen oxide emissions. Sulphur dioxide also seems to increase considerably with highway traffic. Furthermore, the heterogeneous analysis shows that the increase in traffic congestion and urban air pollution is higher in cities with- out tolls - a finding that substantiates congestion pricing - and in cities without subways - a finding that corroborates rapid transit policies. Chapter 4, in contrast, analyses the bidirectional relationship between high- way accidents and traffic congestion for highways In England. The research design is based on the daily and hourly specific mean reversion pattern of highway traffic, which can be used to define a recurrent congestion benchmark. Using this benchmark, I am able to identify the causal effect of accidents on non-recurrent traffic congestion. The results of this analysis suggest that a marginal decrease in the average speed due to an accident is about 7.8 km/h, while the journey time increases by around 27 percent when I consider the duration of this effect. Another important finding is that the effect declines by 70-75 percent after the first quarter of an hour. Finally, a back-of- the- envelope calculation suggests that an accident causes on average a 70-minute traffic delay per km for the users of that particular highway segment, while this effect Is 160 minutes in recurrently congested segments. Chapter 5 uses geo-located data of retail rents, shop vacancies and footfall in the Netherlands to quantify shopping externalities. First, a theoretical model formalizes the existence of vacancies in the property market and establishes the relationship between shop rents and footfall, as well between vacancies and footfall. Identification is obtained using a novel research design based on spatial differences of footfall between intersecting shopping streets. The estimates imply an elasticity of rental in- come with respect to footfall of about 0.25 and about 0.1 with respect to the number of shops. The latter is substantial compared to the elasticities in the agglomeration economies literature. A shop's marginal benefit of a pedestrian passing by Is about 0.004 euros. The study also shows that footfall reduces shop vacancy rates consider-ably. Using the estimated elasticity of rental income, welfare considerations can be made taking into account new and existing shops. An average annual subsidy of about 10 percent of the rent to a new shop is welfare optimal, but when subsidies are given to existing shops, subsidies to shops that generate more footfall should be substantially higher.

The impact of industrial structure on local economic development is analyzed for the case of Morocco. Using annual data for 6 urban areas and 18 industrial sectors indicators for specialization, diversity and competiton of firms within a particular region are constructed for the years 1985-1995. The effects of these and other explanatory variables on local economic activity are estimated using a dynamic panel data model with both individual and time specific effects. The estimation results suggest significant positive specialization and diversity effects and significant negative competition effects asserting the importance of industrial structure for local economic development.

Existing migrant networks play an important role in explaining the size and structure of immigration flows. They affect the net benefits of migration for future migrants by lowering assimilation costs ('self-selection' channel) and increase the probability of potential migrants to obtain a visa through family reunification programs ('immigration policy' channel). This paper presents an identification strategy allowing to disentangle these two channels. Then, it provides an empirical illustration based on US immigration data by metropolitan area and country of origin. First, we show that the overall network externality is strong: the elasticity of migration flows to network size is around one. Second, only a quarter of this elasticity is accounted for by the policy channel. Third, the policy channel was stronger in the nineties than in the eighties due to more generous family reunion program. Fourth, the global elasticity and the policy contribution are much greater for low-skilled migrants.

We show that downsizing has substantial externalities on the health of workers who remain in the firm. To this end, we study mass layoff (ML) survivors in Austria, using workers who survive a ML themselves, but a few years in the future, as a control group. Based on highquality administrative data, we find evidence that downsizing has persistent effects on mental and physical health, and that these effects can be explained by workers fearing for their own jobs. We also show that health externalities due to downsizing imply non-negligible cost for firms, and that wage cuts may have similar effects.