Inequality and Collective Action
نویسندگان
چکیده
We analyze the e ect of inequality in the distribution of endowment of private inputs (e.g., land, wealth) that are complementary in production with collective inputs (e.g., contribution to public goods such as irrigation and extraction from common-property resources) on eÆciency in a simple class of collective action problems. In an environment where transaction costs prevent the eÆcient allocation of private inputs across individuals, and the collective inputs are provided in a decentralized manner, we characterize the optimal secondbest distribution of the private input. We show that while eÆciency increases with greater equality within the group of contributors and non-contributors, in some situations there is an optimal degree of inequality between the groups.
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