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Models With Two Or More Public Goods

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  • Richard Cornes
  • Juni-ichi Itaya

Abstract

We extend the simple model of voluntary public good provision to allow for two or more public goods, and explore the new possibilities that arise in this setting. We show that, when there are many public goods, voluntary contribution equilibrium typically generates, not only too low a level of public good provision, but also the wrong mix of public goods. We also analyse the neutrality property in the more general setting, and extend a neutrality proposition of Bergstrom, Blume and Varian (1986). The first author would like to thank Professor Peter Bardsley and the Economic Theory Centre, University of Melbourne, for providing a very congenial period as a visitor, during which this paper was completed.

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Bibliographic Info

Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 896.

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Length: 28 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:mlb:wpaper:896

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Related research

Keywords: Public goods; Neutrality; Constrained Pareto efficiency;

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References

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  1. Cornes, Richard & Sandler, Todd, 1985. "The Simple Analytics of Pure Public Good Provision," Economica, London School of Economics and Political Science, vol. 52(205), pages 103-16, February.
  2. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
  3. Kemp, Murray C., 1984. "A note of the theory of international transfers," Economics Letters, Elsevier, vol. 14(2-3), pages 259-262.
  4. R. C. Cornes & A. G. Schweinberger, 1996. "Free Riding and the Inefficiency of the Private Production of Pure Public Goods," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 70-91, February.
  5. Kanbur, S. M. R. & Myles, G. D., 1992. "Policy choice and political constraints," European Journal of Political Economy, Elsevier, vol. 8(1), pages 1-29, February.
  6. Campbell, Donald E. & Truchon, Michel, 1988. "Boundary optima and the theory of public goods supply," Journal of Public Economics, Elsevier, vol. 35(2), pages 241-249, March.
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Citations

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Cited by:
  1. Dirk T.G. Rübbelke & Anil Markandya, 2008. "Impure Public Technologies and Environmental Policy," Working Papers 2008.76, Fondazione Eni Enrico Mattei.
  2. Toshihiro Ihori & Martin McGuireb, 2008. "National Adversity: Managing Insurance and Protection," CIRJE F-Series CIRJE-F-554, CIRJE, Faculty of Economics, University of Tokyo.
  3. Pittel, Karen & Rübbelke, Dirk T. G., 2006. "Private provision of public goods: Incentives for donations," Munich Reprints in Economics 19352, University of Munich, Department of Economics.
  4. Kung, Fan-chin, 2008. "Voluntary contributions to multiple public goods in a production economy with widespread externalities," Journal of Mathematical Economics, Elsevier, vol. 44(12), pages 1364-1378, December.
  5. Suman Ghosh & Alexander Karaivanov & Mandar Oak, 2007. "A Case for Bundling Public Goods Contributions," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(3), pages 425-449, 06.
  6. Boadway, Robin & Song, Zhen & Tremblay, Jean-Francois, 2007. "Commitment and matching contributions to public goods," Journal of Public Economics, Elsevier, vol. 91(9), pages 1664-1683, September.

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