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Public Goods, Voting, and Growth

Author

Listed:
  • Kirill Borissov
  • Joseph Hanna

    (Laboratoire IDP, Universite de Valenciennes et du Hainaut-Cambresis)

  • Stephane Lambrecht

Abstract

We study a parametric politico-economic model of economic growth with productive public goods and public consumption goods. The provision of public goods is funded by a proportional tax on consumers' income. Agents are heterogeneous in their initial capital endowments, discount factors and the relative weights of public consumption in overall private utility. They vote on the shares of public goods in GDP. We propose a definition of voting equilibrium, prove the existence and provide a characterization of voting equilibria, and obtain a closed-form solution for the voting outcomes.

Suggested Citation

  • Kirill Borissov & Joseph Hanna & Stephane Lambrecht, 2014. "Public Goods, Voting, and Growth," EUSP Department of Economics Working Paper Series 2014/01, European University at St. Petersburg, Department of Economics.
    • Handle: RePEc:eus:wpaper:ec2014_01
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    References listed on IDEAS

    as
    1. Bosi, Stefano & Seegmuller, Thomas, 2010. "On the role of progressive taxation in a Ramsey model with heterogeneous households," Journal of Mathematical Economics, Elsevier, vol. 46(6), pages 977-996, November.
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    6. Robert A. Becker, 1980. "On the Long-Run Steady State in a Simple Dynamic Model of Equilibrium with Heterogeneous Households," The Quarterly Journal of Economics, Oxford University Press, vol. 95(2), pages 375-382.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Julio Dávila, 2021. "Property rights and long‐run capital," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(6), pages 1261-1286, December.
    2. Kirill Borissov & Mikhail Pakhnin, 2018. "Economic growth and property rights on natural resources," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(2), pages 423-482, March.
    3. Kirill Borissov & Mikhail Pakhnin, 2018. "Economic growth and property rights on natural resources," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(2), pages 423-482, March.
    4. Funashima, Yoshito, 2022. "Efficiency and group size in the voluntary provision of public goods with threshold preference," Research in Economics, Elsevier, vol. 76(3), pages 237-251.
    5. Mikhail Pakhnin, 2021. "Collective Choice with Heterogeneous Time Preferences," CESifo Working Paper Series 9141, CESifo.
    6. Borissov, Kirill & Pakhnin, Mikhail & Puppe, Clemens, 2017. "On discounting and voting in a simple growth model," European Economic Review, Elsevier, vol. 94(C), pages 185-204.

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    More about this item

    Keywords

    intertemporal choice; growth; public goods; voting;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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