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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

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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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Publisher 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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  1. Diamantaras, D. & Gilles, R.P & Ruys, P.H.M., 1994. "Efficiency and Separability in Economies with a Trade Center," Discussion Paper 107, Tilburg University, Center for Economic Research. [Downloadable!]
  2. Peter J. Hammond & Antonio Villar, . "Efficiency with Non-Convexities: Extending the "Scandinavian Consensus" Approaches," Working Papers 97036, Stanford University, Department of Economics. [Downloadable!]
    Other versions:
  3. Gilles, R.P., 1999. "Coalition provision of pure collective goods," Discussion Paper 47, Tilburg University, Center for Economic Research. [Downloadable!]
  4. Bryan Ellickson & Birgit Grodal & Suzanne Scotchmer & William R. Zame, 1998. "Clubs and the Market: Continuum Economies," Microeconomics 9802002, EconWPA. [Downloadable!]
    Other versions:
  5. 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. [Downloadable!]
    Other versions:
  6. Achille Basile & Anna Simone & Maria Graziano, 2005. "Coalitional economies with public projects," Social Choice and Welfare, Springer, vol. 25(1), pages 127-139, October. [Downloadable!] (restricted)
  7. Bryan Ellickson & Birgit Grodal & Suzanne Scotchmer & William Zame, 1997. "Clubs and the Market: Large Finite Economies," UCLA Economics Working Papers 766, UCLA Department of Economics. [Downloadable!]
    Other versions:
  8. William D.A. Bryant, 2002. "Samuelson's 'Curious Case" Revisited: It Turns out to be Normal - Indeed Generic," Research Papers 0209, Macquarie University, Department of Economics. [Downloadable!]
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