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Contributions to International Public Goods and the Notion of Country Size

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  • Ratna K. Shrestha
  • James P. Feehan

Abstract

There is no consistent notion of country size in the literature on the voluntary provision of an international public good. This paper suggests preference-adjusted GNP as a useful index of size. Defining a country s size in that manner, contributing countries are unambiguously larger than free riders. But, interestingly, a larger contributing country does not necessarily contribute more than a smaller one. In the special case when all the contributing countries are of equal size, the one with stronger (weaker) preference for the public good will contribute less (more). In another special case when one of the countries is sufficiently larger than the rest, only this largest country will contribute. These results may help in explaining the diversity in cost-sharing across different international public goods.

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Bibliographic Info

Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.

Volume (Year): 59 (2002/2003)
Issue (Month): 4 (December)
Pages: 551-

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Handle: RePEc:mhr:finarc:urn:sici:0015-2218(2002/200312)59:4_551:ctipga_2.0.tx_2-p

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References

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  1. Sandler, Todd, 1977. "Impurity of Defense: An Application to the Economics of Alliances," Kyklos, Wiley Blackwell, vol. 30(3), pages 443-60.
  2. Martin McGuire, 1974. "Group size, group homo-geneity, and the aggregate provision of a pure public good under cournot behavior," Public Choice, Springer, vol. 18(1), pages 107-126, June.
  3. 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.
  4. McGuire, Martin C & Shrestha, Ratna K, 2003. "A New Approach to Group Structure, Burden Sharing, and the Equilibrium Provision of Public Goods," International Tax and Public Finance, Springer, vol. 10(4), pages 341-56, August.
  5. Weber, S. & Wiesmeth, H., 1990. "Economic Models of NATO," Papers 90-7, York (Canada) - Department of Economics.
  6. Ihori, Toshihiro, 1996. "International public goods and contribution productivity differentials," Journal of Public Economics, Elsevier, vol. 61(1), pages 139-154, July.
  7. Boadway, Robin & Hayashi, Masayoshi, 1999. "Country size and the voluntary provision of international public goods," European Journal of Political Economy, Elsevier, vol. 15(4), pages 619-638, November.
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Cited by:
  1. Keisuke Kawachi & Hikaru Ogawa, 2006. "Further Analysis on Public-Good Provision in a Repeated-Game Setting," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 62(3), pages 339-352, September.
  2. Masayoshi Hayashi & Hiroshi Ohta, 2007. "Increasing marginal costs and satiation in the private provision of public goods: group size and optimality revisited," International Tax and Public Finance, Springer, vol. 14(6), pages 673-683, December.

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