Table of Contents

I: A Selected Review of the Literature.- The Controversy over Pigou’s Increasing Cost Theorem.- Between Controversies.- The Controversy over Coase’s Neutrality Theorem: the Case for Coase.- The Pigovian Revival: the Case against Coase.- Recent Developments.- Summary and Prelude.- II: A Theory of Involuntary Transfers.- Three Kinds of Jointness.- Defensive Strategies.- Formal Model.- General Case.- III: Air Pollution in London, an Exemplary Involuntary Transfer.- Setting of the Model.- The Naive Model.- Non-linearities and Lag Structure.- Conclusions and Further Research.- List of Symbols.