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Decentralization of Pareto Optima in Economies with Public Projects, Nonessential Private Goods and Convex Costs

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Author Info

  • Diamantaras, Dimitrios
  • Gilles, Robert P
  • Scotchmer, Suzanne

Abstract

In the theory of economies with public goods, one usually considers the case in which private goods are essential, i.e., each agent receives a fixed minimum level of utility if he consumes no private goods irrespective of the public goods consumed. This paper develops the second welfare theorem for economies with public projects and possibly inessential private goods. As a corollary we also derive conditions under which valuation equilibria exist.

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Bibliographic Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 8 (1996)
Issue (Month): 3 (October)
Pages: 555-64

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Handle: RePEc:spr:joecth:v:8:y:1996:i:3:p:555-64

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Cited by:
  1. Bryan Ellickson & Birgit Grodal & Suzanne Scotchmer & William R. Zame, 1998. "Clubs and the Market: Continuum Economies," Microeconomics 9802002, EconWPA.
  2. Bryan Ellickson & Birgit Grodal & Suzanne Scotchmer & William R. Zame, 1999. "Clubs and the Market: Large Finite Economies," Discussion Papers 99-05, University of Copenhagen. Department of Economics.
  3. Diamantaras, D. & Gilles, R.P. & Ruys, P.H.M., 1994. "Efficiency and separability in economies with a trade center," Discussion Paper 1994-107, Tilburg University, Center for Economic Research.
  4. Maria Graziano & Maria Romaniello, 2012. "Linear cost share equilibria and the veto power of the grand coalition," Social Choice and Welfare, Springer, vol. 38(2), pages 269-303, February.
  5. Conley, John P. & Wooders, Myrna H., 2001. "Tiebout Economies with Differential Genetic Types and Endogenously Chosen Crowding Characteristics," Journal of Economic Theory, Elsevier, vol. 98(2), pages 261-294, June.
  6. repec:hal:journl:halshs-00367867 is not listed on IDEAS
  7. Peter J. Hammond & Antonio Villar, . "Efficiency with Non-Convexities: Extending the "Scandinavian Consensus" Approaches," Working Papers 97036, Stanford University, Department of Economics.
  8. Gilles, R.P., 1999. "Coalitional Provision of Pure Collective Goods," Discussion Paper 1999-47, Tilburg University, Center for Economic Research.
  9. repec:hal:wpaper:halshs-00531434 is not listed on IDEAS
  10. De Simone, Anna & Graziano, Maria Gabriella, 2004. "The pure theory of public goods: the case of many commodities," Journal of Mathematical Economics, Elsevier, vol. 40(7), pages 847-868, November.
  11. Marcus Berliant & Hideo Konishi, 2000. "The Endogenous Formation of a City: Population Agglomeration and Marketplaces in a Location-Specific Production Economy," Boston College Working Papers in Economics 451, Boston College Department of Economics.
  12. Achille Basile & Anna Simone & Maria Graziano, 2005. "Coalitional economies with public projects," Social Choice and Welfare, Springer, vol. 25(1), pages 127-139, October.

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