externality
UK[ˌekstɜːˈnæləti]US[ˌekstɜːrˈnæləti]
n
An effect of an industrial or commercial activity which affects other parties without this being reflected in market prices, such as the pollution caused by a factory.
n
The fact of existing outside the perceiving subject.
Morpheme Breakdown
extern
al
ity
extern
outside
al
adjective suffix
ity
noun suffix
Etymology
The word 'externality' is built upon the Latin adjective externus, meaning "outward" or "external." The suffix -al was added to form the English adjective 'external,' which describes something situated on the outside. Finally, the abstract noun-forming suffix -ity was appended, converting the adjective into a noun that denotes the state or quality of being external. In modern economics, this literal sense of "outsideness" evolved into the specialized meaning of a cost or benefit that is external to a market transaction, affecting parties outside the immediate buyer-seller relationship.
Analysis
Structure: extern (outside) + al (adjective suffix) + ity (noun suffix)
- extern: From Latin externus (external, outward), itself from exter (on the outside). It functions as the core root conveying the sense of "outside."
- al: A suffix of Latin origin (-alis) used to form adjectives meaning "of or pertaining to."
- ity: A noun-forming suffix of Latin origin (-itas) denoting a state, condition, or quality.
Examples
The factory did not account for the negative externality of its river pollution.
One positive externality of the new park was increased property values in the surrounding neighborhood.
Philosophers debate the externality of the physical world versus our internal perception of it.