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Matching as a cure for underprovision of voluntary public good supply

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  • Buchholz, Wolfgang
  • Cornes, Richard
  • Rübbelke, Dirk

Abstract

Matching mechanisms are widely regarded as providing a promising way to cure the public good underprovision problem, but the Pareto optimal interior matching equilibrium emerges only under very special conditions. However, we show that public good underprovision is normally avoided.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 117 (2012)
Issue (Month): 3 ()
Pages: 727-729

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Handle: RePEc:eee:ecolet:v:117:y:2012:i:3:p:727-729

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Public goods; Matching; Pareto optimality;

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References

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  1. Cornes, Richard & Sandler, Todd, 2000. "Pareto-Improving Redistribution and Pure Public Goods," Staff General Research Papers 1833, Iowa State University, Department of Economics.
  2. Robin Boadway & Zhen Song & Jean-Francois Tremblay, 2006. "Commitment and Matching Contributions to Public Goods," Working Papers 1067, Queen's University, Department of Economics.
  3. Bergstrom, Theodore C & Cornes, Richard C, 1983. "Independence of Allocative Efficiency from Distribution in the Theory of Public Goods," Econometrica, Econometric Society, vol. 51(6), pages 1753-65, November.
  4. Richard Cornes & Roger Hartley, 2003. "Aggregative Public Goods Games," NajEcon Working Paper Reviews 666156000000000063, www.najecon.org.
  5. Guttman, Joel M, 1978. "Understanding Collective Action: Matching Behavior," American Economic Review, American Economic Association, vol. 68(2), pages 251-55, May.
  6. Andreoni, J. & Bergstrom, T., 1993. "Do Government Subsidies Increase the Private Supply of Public Goods?," The Warwick Economics Research Paper Series (TWERPS) 406, University of Warwick, Department of Economics.
  7. Georg Kirchsteiger & Clemens Puppe, 1997. "On the possibility of efficient private provision of public goods through government subsidies," ULB Institutional Repository 2013/5913, ULB -- Universite Libre de Bruxelles.
  8. Varian, Hal R., 1994. "Sequential contributions to public goods," Journal of Public Economics, Elsevier, vol. 53(2), pages 165-186, February.
  9. Danziger, Leif & Schnytzer, Adi, 1991. "Implementing the Lindahl voluntary-exchange mechanism," European Journal of Political Economy, Elsevier, vol. 7(1), pages 55-64, April.
  10. Boadway,Robin & Pestieau,Pierre & Wildasin,David, 1986. "Tax-transfer policies and the voluntary provision of public goods," Discussion Paper Serie A 130, University of Bonn, Germany.
  11. Buchholz, Wolfgang & Cornes, Richard & Rübbelke, Dirk, 2011. "Interior matching equilibria in a public good economy: An aggregative game approach," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 639-645, August.
  12. Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185, April.
  13. Josef Falkinger & Johann K. Brunner, 1999. "Taxation in an economy with private provision of public goods," Review of Economic Design, Springer, vol. 4(4), pages 357-379.
  14. Althammer, Wilhelm & Buchholz, Wolfgang, 1993. "Lindahl-equilibria as the outcome of a non-cooperative game : A reconsideration," European Journal of Political Economy, Elsevier, vol. 9(3), pages 399-405, August.
  15. 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.
  16. Falkinger, Josef, 1996. "Efficient private provision of public goods by rewarding deviations from average," Journal of Public Economics, Elsevier, vol. 62(3), pages 413-422, November.
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Cited by:
  1. Wolfgang Buchholz & Richard Cornes & Dirk Rübbelke, 2012. "Potentially Harmful International Cooperation on Global Public Good Provision," Discussion Paper Series RECAP15 005, RECAP15, European University Viadrina, Frankfurt (Oder).

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