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Reconsideration of the Crowding-out Effect with Non-linear Contribution Technology

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Author Info
Keisuke Hattori () (University of Osaka)

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Abstract

In this paper we reconsider the completely crowding-out effect in a model of the private provision of public goods with non-linear technology for government contributions. Even though there are no free-riders, government contributions financed by lump-sum taxes crowd out private contributions only marginally. We also investigate the relationship between desirable government policies and country size (the number of individuals). We show that equilibrium government contributions are unaffected by the change in the number of individuals in a no-free-rider economy.

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Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 8 (2003)
Issue (Month): 7 ()
Pages: 1-10
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Handle: RePEc:ebl:ecbull:v:8:y:2003:i:7:p:1-10

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Related research
Keywords: Country size Crowding-out effect Private provision of public goods

Find related papers by JEL classification:
H4 - Public Economics - - Publicly Provided Goods
H2 - Public Economics - - Taxation, Subsidies, and Revenue

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Andreoni, James & Bergstrom, Ted, 1996. " Do Government Subsidies Increase the Private Supply of Public Goods?," Public Choice, Springer, vol. 88(3-4), pages 295-308, September.
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  2. Myles, Gareth D., 2000. "Wasteful government, tax evasion, and the provision of public goods," European Journal of Political Economy, Elsevier, vol. 16(1), pages 51-74, March. [Downloadable!] (restricted)
  3. Buchholz, Wolfgang & Konrad, Kai A., 1995. "Strategic transfers and private provision of public goods," Journal of Public Economics, Elsevier, vol. 57(3), pages 489-505, July. [Downloadable!] (restricted)
  4. Ihori, Toshihiro, 1996. "International public goods and contribution productivity differentials," Journal of Public Economics, Elsevier, vol. 61(1), pages 139-154, July. [Downloadable!] (restricted)
  5. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December. [Downloadable!] (restricted)
  6. Warr, Peter G., 1982. "Pareto optimal redistribution and private charity," Journal of Public Economics, Elsevier, vol. 19(1), pages 131-138, October. [Downloadable!] (restricted)
  7. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February. [Downloadable!] (restricted)
  8. Roberts, Russell D, 1984. "A Positive Model of Private Charity and Public Transfers," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 136-48, February. [Downloadable!] (restricted)
  9. Itaya, Jun-ichi & de Meza, David & Myles, Gareth D., 1997. "In praise of inequality: public good provision and income distribution," Economics Letters, Elsevier, vol. 57(3), pages 289-296, December. [Downloadable!] (restricted)
  10. Bergstrom, Ted C. & Blume, Larry & Varian, Hal, 1992. "Uniqueness of Nash equilibrium in private provision of public goods : An improved proof," Journal of Public Economics, Elsevier, vol. 49(3), pages 391-392, December. [Downloadable!] (restricted)
  11. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February. [Downloadable!] (restricted)
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  1. Villanacci, Antonio & Zenginobuz, Unal, 2004. "Pareto improving interventions in a general equilibrium model with private provision of public goods," MPRA Paper 183, University Library of Munich, Germany, revised 07 Jun 2006. [Downloadable!]
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