Dynamic Free Riding with Irreversible Investments

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Dynamic Free Riding with Irreversible Investments

We study the Markov equilibria of a model of free riding in which n infinitely lived agents choose between private consumption and irreversible contributions to a durable public good. We show that the set of equilibrium steady states converges to a unique point as depreciation converges to zero. For any level of depreciation, moreover, the highest steady state converges to the efficient level a...

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Dynamic Free Riding with Irreversible Investments : On - line Appendix

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ژورنال

عنوان ژورنال: American Economic Review

سال: 2014

ISSN: 0002-8282

DOI: 10.1257/aer.104.9.2858