Sunday, 6 September 2009

Word of the day: Externalities

OK this isn't exactly a new word, I've come across it many times without ever being sufficiently bothered to look up its exact meaning. That's often an acceptable modus operandi when you can make a believable (if only to you) guess at a word's meaning, but that's something I never really managed to do with "externalities" — the best I managed was that it referred to something nasty.

So here's a definition from Paul Krugman, no less, in a recent article in the New York Times: "externalities — costs that people impose on others without paying the price, like traffic congestion or pollution." So now I know.

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