Tuesday, August 14, 2012


A few positive externalities from a house in suburbia:
  • The neighbor's tree that perfectly blocks harsh evening Sun from my house and backyard
  • The inviting aromas from another neighbor's grill
  • The sound of kids splashing in a nearby pool
  • Moving to the front yard, the mostly well landscaped gardens of the houses up and down the street especially the neighbor's right across the street
  • (more to come)
A spur of the moment theory: our marginal choice of where to live (perhaps many other choices as well at the margin) are largely explained by finding circumstances where positive externalities outweigh negative externalities.

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