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According to Ronald Coase (1988, 23; The Firm, The Market and the Law. 
Chicago: University of Chicago Press) Paul Samuelson (EJ September 1958, 
540) is the author of the earliest use of the word "externality" to 
describe Pigou's insight.  But Samuelson's use of the word does not 
display a self-conscious perception that he is inventing a word, so 
perhaps there is another earlier usage.  Samuelson will probably reply to 
a letter requesting clarification.         
 
The following year (1959), Samuelson and Solow invented the term  
"Phillips curve" and George Stigler experienced the "most exciting 
intellectual event" of his life: the 'Coase versus Pigou' evening at Aaron 
Director's house, which ended up with "no votes for Pigou".     
 
Robert Leeson 
 
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