The Private Provision of Public Goods: Neutrality, Efficiency, Equity and Population
نویسندگان
چکیده
In this paper, we present a new neutrality theorem in the theory of private provision of public good. Our new theorem is qualitative or global in the sense that it does not depend on the original equilibrium allocation. The theorem will reveal that the equilibrium obtained under a proper income redistribution can be made more efficient in the strict Pareto’s sense than the original allocation. The redistribution leading to the improvement also makes the inequity of income distribution higher. Finally, we establish a proposition concerning a relation between the inefficiency of Nash equilibria and the population size. JEL classification: H40, H41
منابع مشابه
The cost of segregation in (social) networks
This paper investigates the private provision of public goods in segregated societies. While most research agrees that segregation undermines public goods provision the findings are mixed for private provision: social interactions, being strong within groups and limited across groups, may either increase or impede voluntary contributions. Surprisingly, very little light is shed in the literatur...
متن کاملToward an efficiency rationale for the public provision of private goods
Public provision of a private goods is justified on efficiency grounds in a modelwith no redistributive preferences. A government’s involvement in the provision of a private good generates information about preferences that facilitatesmore efficient revenue extraction for the provision of public goods. Public provision of the private good improves economic efficiency under a condition that is a...
متن کاملOn the private provision of public goods on networks
This paper analyzes the private provision of public goods where consumers interact within a fixed network structure and may benefit only from their direct neighbors’ provisions. We present a proof for existence and uniqueness of a Nash equilibrium with general best-reply functions. Our uniqueness result simultaneously extends similar results in Bergstrom, Blume, and Varian (1986) on the private...
متن کاملThe Tragedy of Maldistribution: Climate, Sustainability, and Equity
This essay is an initial exploration of the dimensions of the equity/sustainability linkage from the perspective of public goods analysis. Sustainability requires an abundance of public goods. Where these commons lack governance, sustainability is at risk. Equity is a critical component of sustainability that can itself be viewed as a public good, subject to deterioration (maldistribution) when...
متن کاملSocial Heterogeneity and Optimal Mix between Public and Private Provision of Public goods
With a framework of incomplete contract, this paper shows that for provision of public goods such as Medicare and education, pure privatization can’t promote competition. On the contrary, the co-existence of public and private provision can enhance de facto competition. Two competitive effects are identified. When consumers are heterogeneous, the co-existence of public and private ownership giv...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2004