An impure public good model with lotteries in large grou
AbstractWe analyze the efect of a large group on an impure public goods model with lotteries. We show that as populations get large, and with selfish preferences, the level of contributions converges to the one given by voluntary contributions. With altruistic preferences (of the warm glow type), the contributions converge to a level strictly higher than those given by voluntary contributions, even though in general they do not yield First-best levels.
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Bibliographic InfoPaper provided by Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales in its series Documentos del Instituto Complutense de Análisis Económico with number 2011-05.
Length: 14 pages
Date of creation: 2011
Date of revision:
Lotteries; Public good; Warm glow; Eficiency.;
Other versions of this item:
- Cabrales, Antonio & Lugo, Haydée, 2011. "An impure public good model with lotteries in large groups," CEPR Discussion Papers 8319, C.E.P.R. Discussion Papers.
- Antonio Cabrales & Haydeé Lugo, 2011. "An impure public good model with lotteries in large groups," Economics Working Papers we1107, Universidad Carlos III, Departamento de Economía.
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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