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Government and the provision of public goods : from equilibrium models to mechanism design

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  • Monique Florenzano

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

Focusing on their analysis of the optimal public goods provision problem, this paper follows the parallel development of equilibrium models and mechanism design after the accomodation of Samuelson's definition of collective goods to the general equilibrium framework. Both paradigms lead to the negative conclusion of the impossibility of a fully decentralized optimal public goods provision through market or market-like institutions.

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  • Monique Florenzano, 2010. "Government and the provision of public goods : from equilibrium models to mechanism design," Post-Print halshs-00543296, HAL.
    • Handle: RePEc:hal:journl:halshs-00543296
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00543296
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    More about this item

    Keywords

    Lindahl-Foley equilibrium; Wicksell-Foley equilibrium; private provision equilibrium; free-rider problem; mechanism design; incentive compatibility; principal-agent models.; Equilibre de Lindahl; équilibre public compétitif; équilibre de provision privée; problème du passager clandestin; théorie des mécanismes; modèles de principal-agent.;
    All these keywords.

    JEL classification:

    • B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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