külalislahkuses

Külalislahkuse (Estonian for "externality") is a concept in economics referring to the impact of an economic activity on a third party not directly involved in the transaction. It occurs when the costs or benefits of a decision spill over to others. Positive externalities involve benefits to third parties, such as education improving community knowledge, while negative externalities involve costs, like pollution from a factory affecting nearby residents. Governments may address externalities through regulations, taxes, or subsidies to align private incentives with social welfare. Understanding külalislahkuse is crucial for analyzing market failures and designing policies that promote efficient resource allocation.