We consider a (pure) public goods provision problem with voluntary participation in a quasi-linear economy. We propose a new hybrid solution concept, the free-ridingproof core (FRP-Core), which endogenously determines a contribution group, public goods provision level, and how to share the provision costs. The FRP-Core is always nonempty in public goods economies but does not usually achieve gl...

Many observers have argued that ethnic divisions make public goods more difficult to provide. This paper examines the provision of public goods in an economy with ethnic divisions. Households feel altruistically toward other households in their ethnic group. The amount of public goods in private contribution equilibrium is generally in decreasing in the amount of ethnic diversity. Public goods ...

during the last two decades, decentralization has been supposed as a tool for making the public sector policies more efficient. despite the claimed benefits, there are some costs; some of decentralization theorists believe that devolution of pure public goods provision to local governments has led to the failure of decentralization policies. this article uses game theory to study the implicatio...

the public sector is an influential partner of the market economy in many developing countries. in the absence of government’s intervention, economic functioning of these countries could turn into constant disequilibrium without any hope of growth and economic prosperity. on the other hand unlimited government intervention could harm the economic growth by unnatural expansion of public sector a...