An impure public good model with lotteries in large groups
AbstractWe analyze the effect of a large group on an impure public goods model with lotteries. We show that as populations get large, and with selfish preferences, the level of contributions converges to the one given by voluntary contributions. With altruistic preferences (of the warm glow type), the contributions converge to a level strictly higher than those given by voluntary contributions, even though in general they do not yield first-best levels.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8319.
Date of creation: Apr 2011
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Other versions of this item:
- Antonio Cabrales & Haydeé Lugo, 2011. "An impure public good model with lotteries in large groups," Economics Working Papers we1107, Universidad Carlos III, Departamento de Economía.
- Antonio Cabrales & Haydée Lugo, 2011. "An impure public good model with lotteries in large grou," Documentos del Instituto Complutense de AnÃ¡lisis EconÃ³mico 2011-05, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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