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Migrants and mafia as global public goods

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Author Info

  • Fossati, Amedeo

    ()

  • Montefiori, Marcello

    ()

Abstract

Global public goods, differently from what it might be thought, are quite common in the real world. This work suggests that both the governments' struggle against Mafia and the prevention of immigration can be regarded as global public goods. We assume a federation of jurisdictions with two tiers of Government: the central and the local. Regional utility directly represents the preferences of citizens, since the local governments aim at individualistic utility maximization; central government uses the redistribution of resources among the members of the federation to maximize the social welfare which is given, as usual, by the sum of regional utilities. The Central Government aims at welfare maximization. To get its goal it has to find out the efficient way to fund and provide public goods taking into account not only their particular characteristics but also the fact that, in many circumstances, their production faces increasing cost, which may depend both on the quantity of good produced and on the type (high or low cost) of the producer (which, in this framework, coincides with the jurisdiction). Thus the first issue addressed by the paper concerns the choice between central and local provision. Furthermore, as far as the informational structure is concerned, the centre lacks information concerning the type of each region. Thus, the central government's key informational problem concerns the regional costs and quantities with regard both to the public and the private good. Indeed we assume that the centre can observe the expenditure levels but neither the costs nor the outputs associated with those expenditure levels.

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File URL: http://polis.unipmn.it/pubbl/RePEc/uca/ucapdv/montefiori148.pdf
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Bibliographic Info

Paper provided by Institute of Public Policy and Public Choice - POLIS in its series POLIS Working Papers with number 131.

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Length: 23 pages
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:uca:ucapdv:131

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Web page: http://polis.unipmn.it

Related research

Keywords: global public good; asymmetric information; adverse selection; redistribution; Mafia;

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Cited by:
  1. Orso, Cristina Elisa, 2009. "Formal and informal sectors: Interactions between moneylenders and traditional banks in the rural Indian credit market," POLIS Working Papers 135, Institute of Public Policy and Public Choice - POLIS.
  2. Marchese, Carla & Ramello, Giovanni B., 2010. "In the beginning was the Word. Now is the Copyright," POLIS Working Papers 140, Institute of Public Policy and Public Choice - POLIS.
  3. Giuranno, Michele, 2009. "The logic of party coalitions with political activism and public financing," POLIS Working Papers 134, Institute of Public Policy and Public Choice - POLIS.

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