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Multi-National Public Goods Provision under Multilateral Income Transfers & Productivity Differences

Author

Listed:
  • Tatsuyoshi Miyakoshi

    (Faculty of Science & Engineering, Hosei University, Japan)

  • Laixun Zhao

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

This paper examines multinational public goods provision under multilateral income transfers and productivity differences across countries. We assume the existence of a planner who uses linear approximation for utility maximization for all countries. The main findings are: (i) A country is an income receiver if it has an advantage in producing public goods; (ii) the planner country can determine the values of transfers for all countries with an adjustment cost; (iii) all countries obtain an identical level of utility; (iv) the country with the lowest adjustment cost is the best candidate for the planner country. All results are derived based on well-known information regarding the cost of producing the public goods and on income levels.

Suggested Citation

  • Tatsuyoshi Miyakoshi & Laixun Zhao, 2012. "Multi-National Public Goods Provision under Multilateral Income Transfers & Productivity Differences," Discussion Paper Series DP2012-19, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2012-19
    as

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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2012-19.pdf
    File Function: First version, 2012
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    International public goods; Multilateral income transfers; Productivity difference; Planner; Adjustment cost; Welfare;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • F1 - International Economics - - Trade

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