Optimal public goods provision: implications of endogenizing the labor/leisure choice
AbstractConventional analysis of public goods provision aggregates individual willinness to pay while treating income as exogenous, ignoring the fact that we generate income to allow us to purchase utility-generating goods. We explore the implications of endogenizing the laborl/leisure decision by explicitly considering leisure demand in a model of public goods provision. We consider benefit analysis of public goods provision and find that increments of the public good will generally be under-valued using conventional analysis while decrements to the public good (rare in public good settings) will be overvalued.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 19923.
Date of creation: 2008
Date of revision:
environmental economics; willingness-to-pay; willingness-to-accept; valuation; public goods; public goods provision; benefit-cost analysis;
Other versions of this item:
- Nicholas E. Flores & Philip E. Graves, 2008. "Optimal Public Goods Provision: Implications of Endogenizing the Labor/Leisure Choice," Land Economics, University of Wisconsin Press, vol. 84(4), pages 701-707.
- D0 - Microeconomics - - General
- H4 - Public Economics - - Publicly Provided Goods
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- A1 - General Economics and Teaching - - General Economics
- N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
- Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
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- Graves Philip E, 2009.
"A Note on the Valuation of Collective Goods: Overlooked Input Market Free Riding for Non-Individually Incrementable Goods,"
The B.E. Journal of Economic Analysis & Policy, De Gruyter,
De Gruyter, vol. 9(1), pages 1-20, February.
- Graves, Philip E., 2009. "A note on the valuation of collective goods: overlooked input market free riding for non-individually incrementable goods," MPRA Paper 19928, University Library of Munich, Germany.
- Philip E. Graves, 2011.
"Appropriate Fiscal Policy over the Business Cycle: Proper Stimulus Policies Can Work,"
The IUP Journal of Governance and Public Policy, IUP Publications,
IUP Publications, vol. 0(2), pages 26-32, June.
- Philip E. Graves, 2010. "Appropriate Fiscal Policy over the Business Cycle: Proper Stimulus Policies Can Work," CESifo Working Paper Series 3160, CESifo Group Munich.
- Philip E. Graves, 2010. "Benefit-Cost Analysis of Environmental Projects: A Plethora of Systematic Biases," CESifo Working Paper Series 3144, CESifo Group Munich.
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