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Majority Rule and the Public Provision of a Private Good

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  • Gouveia, Miguel

Abstract

This paper extends the literature on the socialization of commodities by developing a model of voting over the public provision of a private good: health care. The private use of health care is modeled as a supplement rather than as an exclusive alternative to public health care. A majority rule equilibrium is shown to exist. The equilibrium characterization is an example of Director's law of income redistribution. A ban on private health care activities is shown to be opposed by a majority of voters. Implications for the size and distribution of private health care expenditures are drawn. Copyright 1997 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 93 (1997)
Issue (Month): 3-4 (December)
Pages: 221-44

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Handle: RePEc:kap:pubcho:v:93:y:1997:i:3-4:p:221-44

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Web page: http://www.springerlink.com/link.asp?id=100332

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  1. Privatizacija PTKM – “There you go again”
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