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Publicly Provided Private Goods and Redistribution: A General Equilibrium Analysis

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  • Pirttila, Jukka
  • Tuomala, Matti

Abstract

Public provision of private goods is examined within a self-selection framework where production depends on labor supply of different households and the level of public provision. It is shown that productivity and wage-structure effects can create a role for public provision, even if preferences are weakly separable between goods and leisure. Public provision of education may offer an intuitively appealing case for the production-side impacts. We also address the reasons for public provision in a dynamic, overlapping generations economy, whereby public provision may affect efficiency and social costs of redistribution of future generations as well. Copyright 2002 by The editors of the Scandinavian Journal of Economics.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 104 (2002)
Issue (Month): 1 ()
Pages: 173-88

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Handle: RePEc:bla:scandj:v:104:y:2002:i:1:p:173-88

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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442

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Cited by:
  1. Yuriy N. Gavrilets & Irina V. Tarakanova, 2013. "Optimality And Equilibrium In A Single-Product Economic Model With Collective Good (Computer Experiments)," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 9(4), pages 7-20.
  2. Amedeo Piolatto, 2011. "Financing public education: a political economy model with altruistic agents and retirement concerns," Working Papers. Serie AD 2011-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  3. Sören Blomquist & Vidar Christiansen & Luca Micheletto, 2008. "Public Provision of Private Goods and Nondistortionary Marginal Tax Rates," CESifo Working Paper Series 2303, CESifo Group Munich.
  4. Luciano Greco, 2006. "Optimal Redistribution With Productive Social Services," "Marco Fanno" Working Papers 0026, Dipartimento di Scienze Economiche "Marco Fanno".
  5. Spencer Bastani & Sören Blomquist & Luca Micheletto, 2010. "Public Provision of Private Goods, Tagging and Optimal Income Taxation withHeterogeneity in Needs," CESifo Working Paper Series 3275, CESifo Group Munich.
  6. Jukka Pirttilä & Sanna Tenhunen, 2005. "Pawns and Queens Revisited: Public Provision of Private Goods when Individuals make Mistakes," CESifo Working Paper Series 1466, CESifo Group Munich.
  7. Yoseph Yilma Getachew, 2011. "Public Investment Policy, Distribution, and Growth: What Levels of Redistribution through Public Investment Maximize Growth?," DEGIT Conference Papers c016_072, DEGIT, Dynamics, Economic Growth, and International Trade.
  8. Sanghamitra Bandyopadhyay & Joan Esteban, 2007. "Redistributive Taxation and PublicExpenditures," STICERD - Distributional Analysis Research Programme Papers 95, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  9. Daniela Sonedda & Gilberto Turati, 2005. "Winners and Losers in the Italian Welfare State: A Microsimulation Analysis of Income Redistribution Considering In-Kind Transfers," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(4), pages 423-464, December.
  10. Jukka Pirttilä & Ilpo Suoniemi, 2010. "Public Provision, Commodity Demand and Hours of Work: An Empirical Analysis," CESifo Working Paper Series 3000, CESifo Group Munich.

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