================= HES POSTING ================= Brian Eggleston's message sent me to Andreas Papandreou's EXTERNALITY AND INSTITUTIONS (Clarendon, 1994). He notes (p. 22) that Oskar Lange (1936) offered a "broadened scope for externality" in discussing "external economies with centrally administered economic systems." Whether or not he used the term "externality" or "externalities" awaits further checking. Papandreou also mentions Sidgwick's (1883) discussion of timber companies affecting "atmosphere through deforestation." Mark Blaug's entry on Sidgwick (in GREAT ECONOMISTS BEFORE KEYNES, CUP, 1986) says that he (Sidgwick) brought a "recognition of externalities in production (the famous example of the lighthouse) as a source of 'market failure'." But whether or not Henry used "externality" awaits someone with access to the text. I stand by Francis Bator (1957) for the first published use of the term "externality." Dan Bromley [log in to unmask] ============ FOOTER TO HES POSTING ============ For information, send the message "info HES" to [log in to unmask]