One-sided private provision of public goods with implicit Lindahl pricing
AbstractWe consider a sequential game in which one player produces a public good and the other player can influence this decision by making an unconditional transfer. An efficient allocation requires the Lindahl property: the sum of the two (implicit) individual prices has to be equal to the resource cost of the public good. Under mild conditions this requires a personal price for the providing player that lies below half of the resource cost. These results can, for example, justify high marginal taxes on wages of secondary earners. Copyright Springer-Verlag 2013
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Bibliographic InfoArticle provided by Springer in its journal Journal of Economics.
Volume (Year): 110 (2013)
Issue (Month): 2 (October)
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Web page: http://www.springerlink.com/link.asp?id=108909
Lindahl pricing; Noncooperative games; Private provision of public goods; Stackelberg equilibirum; C72; D61; H21; H41;
Other versions of this item:
- Meier, Volker, 2013. "One-sided private provision of public goods with implicit Lindahl pricing," Munich Reprints in Economics 19181, University of Munich, Department of Economics.
- Volker Meier, 2010. "One-Sided Private Provision of Public Goods with Implicit Lindahl Pricing," CESifo Working Paper Series 3295, CESifo Group Munich.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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