# Externalities

`kaal:entity:externalities`

**Status.** derived

This node is assembled mechanically from the 7 claims that carry the concept tag `externalities`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

7 claims across 5 works, 2011 to 2021.

**2011**

- [1806252-015](https://wulfkaal.github.io/claims/1806252-015) [definitional/asserted] -- An institution or a country creates externalities when it manages its own hedge fund generated systemic risk without considering how its actions or inactions affect risk in the system as a whole.
  > An institution or country creates externalities if it manages its own hedge fund-generated systemic risk without considering the impact of its actions or inactions on the risk in the system as a whole.
  Kaal, Hedge Fund Regulation Via Basel III (2011). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1806252
- [1806252-035](https://wulfkaal.github.io/claims/1806252-035) [design/asserted] -- Registering hedge funds with regulators and requiring disclosure of pertinent information could help minimize the moral hazard, social externalities, and systemic risk generated by the hedge fund industry.
  > Recent attempts at regulating hedge funds by registering them with regulators and requiring disclosure of pertinent information could help to minimize moral hazard, social externalities, and systemic risk generated by the hedge fund industry.
  Kaal, Hedge Fund Regulation Via Basel III (2011). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1806252

**2012**

- [1998455-001](https://wulfkaal.github.io/claims/1998455-001) [mechanism/argued] *(failure mode)* -- Government bailouts of systemically important financial institutions create strong incentives for those institutions to externalize the cost of their risk taking onto taxpayers.
  > Government bailouts create strong incentives to externalize the cost of SIFIs' risk taking onto taxpayers.
  Wulf A. Kaal, Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance (2012). SSRN: https://ssrn.com/abstract=1998455

**2017**

- [2992962-007](https://wulfkaal.github.io/claims/2992962-007) [empirical/evidenced] *(failure mode)* -- Proof of work mining carries significant externalities: the authors estimate that the total energy cost of running the global network of computers solving proof of work puzzles was around 700 million US dollars per year before publication.
  > One problem with proof-of-work mining is that there are significant externalities. Before the publication of this article, the total energy costs for running the global network of computers devoted to solving the proof-of-work puzzles was estimated at around $700 million USD per year.
  Wulf A. Kaal, Craig Calcaterra, Crypto Transaction Dispute Resolution (2017). SSRN: https://ssrn.com/abstract=2992962

**2020**

- [3709041-007](https://wulfkaal.github.io/claims/3709041-007) [failure/argued] *(failure mode)* -- Both dominant ideologies fail in symmetrical ways: capitalism produces inequity, inequality, monopolies, and other market failures, while socialism has incentive design defects in which hard work is not effectively rewarded and external costs are largely ignored.
  > Capitalism can lead to significant inequities, inequality, as well as monopolies, and other market failures. Similarly, socialism has significant incentive design issues, where hard work is not rewarded effectively and external cost are largely ignored.
  Kaal, Blockchain Technology for Good (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3709041
- [3709041-013](https://wulfkaal.github.io/claims/3709041-013) [mechanism/argued] -- Because decentralism pursues growth through connectivity and network effects rather than per unit cost reduction and economies of scale, negative externalities are minimized without any centralized planning.
  > As such, negative externalities are minimized without centralized planning.
  Kaal, Blockchain Technology for Good (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3709041

**2021**

- [3808867-008](https://wulfkaal.github.io/claims/3808867-008) [mechanism/argued] -- Because decentralism pursues growth through connectivity and network effects rather than through per unit cost reduction and economies of scale, negative externalities are minimized without any centralized planning.
  > is focused on connectivity and growth through network effects. As such, negative externalities are minimized without centralized planning.
  Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/externalities.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.