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From local to global public goods: how should externalities be represented?

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  • Rosella Levaggi

Abstract

The literature on public goods provision has experienced a significant increase since Samuelson's (1954) paper. The common goal is to make the model more suitable to describe a more general class of non-rival goods. However, there does not seem to be a consensus in the literature on the form of the function to be used to describe the externality created by the public good. In this note we try to show the hypotheses underlying the functions used. The different models proposed are optimal when used in the right framework and this should be kept in mind when choosing the function in relation to the type of public good to be studied.

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Paper provided by University of Brescia, Department of Economics in its series Working Papers with number 0903.

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Date of creation: 2009
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Handle: RePEc:ubs:wpaper:0903

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  1. Huber, Bernd & Runkel, Marco, 2006. "Optimal design of intergovernmental grants under asymmetric information," Munich Reprints in Economics 19392, University of Munich, Department of Economics.
  2. Hikaru Ogawa & David E. Wildasin, 2007. "Think Locally, Act Locally: Spillovers, Spillbacks, and Efficient Decentralized Policymaking," CESifo Working Paper Series 2142, CESifo Group Munich.
  3. Wildasin, David E., 2004. "The Institutions of Federalism: Toward an Analytical Framework," National Tax Journal, National Tax Association, vol. 57(2), pages 247-72, June.
  4. Warr, Peter G., 1983. "The private provision of a public good is independent of the distribution of income," Economics Letters, Elsevier, vol. 13(2-3), pages 207-211.
  5. David E. Wildasin, 2001. "Externalities and Bailouts: Hard and Soft Budget Constraints in Intergovernmental Fiscal Relations," Public Economics 0112002, EconWPA.
  6. Todd Sandler & Daniel G Arce M, 2002. "A conceptual framework for understanding global and transnational public goods for health," Fiscal Studies, Institute for Fiscal Studies, vol. 23(2), pages 195-222, June.
  7. Crivelli, Ernesto & Staal, Klaas, 2006. "Size and soft budget constraints," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 172, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  8. Ernesto Crivelli & Klaas Staal, 2008. "Size, Spillovers and Soft Budget Constraints," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2008_17, Max Planck Institute for Research on Collective Goods.
  9. Buchholz, Wolfgang & Konrad, Kai A., 1995. "Strategic transfers and private provision of public goods," Journal of Public Economics, Elsevier, vol. 57(3), pages 489-505, July.
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Cited by:
  1. Alessandro Fedele & Paolo M. Panteghini & Sergio Vergalli, 2010. "Optimal Investment and Financial Strategies under Tax Rate Uncertainty," Working Papers 2010.68, Fondazione Eni Enrico Mattei.
  2. Bisin, A. & Geanakoplos, J.D. & Gottardi, P. & Minelli, E. & Polemarchakis, H., 2011. "Markets and contracts," Journal of Mathematical Economics, Elsevier, vol. 47(3), pages 279-288.
  3. Alessandra Del Boca & Michele Fratianni & Franco Spinelli & Carmine Trecroci, 2008. "The Phillips Curve and the Italian Lira, 1861-1998," Mo.Fi.R. Working Papers 8, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  4. Alessandro Fedele & Raffaele Miniaci, 2010. "Do Social Enterprises Finance Their Investments Differently from For-profit Firms? The Case of Social Residential Services in Italy," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 1(2), pages 174-189, October.
  5. Monica Billio & Roberto Casarin, 2010. "Bayesian Estimation of Stochastic-Transition Markov-Switching Models for Business Cycle Analysis," Working Papers 1002, University of Brescia, Department of Economics.
  6. Martin Gregor, 2012. "Modeling positive inter-jurisdictional public spending spillovers," Working Papers IES 2012/16, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jun 2012.
  7. Francesco Menoncin & Paolo Panteghini, 2009. "Retrospective Capital Gains taxation in the real world," Working Papers 0910, University of Brescia, Department of Economics.
  8. Rosella Levaggi & Francesco Menoncin, 2009. "Decentralized provision of merit and impure public goods," Working Papers 0909, University of Brescia, Department of Economics.
  9. Martin Meier & Enrico Minelli & Herakles Polemarchakis, 2014. "Competitive markets with private information on both sides," Economic Theory, Springer, vol. 55(2), pages 257-280, February.
  10. Martin Gregor & Lenka Šastná, 2011. "The Decentralization Tradeoff for Complementary Spillovers," Working Papers IES 2011/13, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Apr 2011.
  11. Alessandro Fedele & Francesco Liucci & Andrea Mantovani, 2009. "Credit availability in the crisis: the European investment bank group," Working Papers 0913, University of Brescia, Department of Economics.

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