Optimal Public Goods Provision: Implications of Endogenizing the Labor/Leisure Choice
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چکیده
Conventional analysis of public goods provision aggregates individual wiltitigne.ss to pay while treatitig income as exogenous, ignoring the fact that we generate income to allow us to purclia.se utility-generating goods. We explore the implicatiotis of endogenizing the lahorlleisure decision hy explicitly considering leisure detnami in a model of public goods provision. We consider benefit analysis of public goods provision atul JÍtul that increments of the public good will generally be under-valued using conventiotial attaly.sis while decrctncnts to the public good (rare in public good settings) will be overvalued (JELC91,D61,Q5I)
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