I hope you are doing great during your final exams!
As many of us are, by solving the final examination some questions have arisen to me.
We have seen in many classes that in the context of externalities, the “private equilibrium” is not always Pareto efficient and so, the government intervention is needed. This was a major topic during the “walfare state” age in the mid nineties used to justify the government existance.
My question is, if the government intervention in the presence of externalities is such that would maximize social welfare, is the outcome a Kantian equilibrium? In other words, is it equivalent to solve a central planner problem than to find a Kantian equilibrium?
If it is or not, how so?