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On financing global and international public goods

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  • Sandler, Todd

Abstract

Three dimensions of public goods--nonrivalry of benefits, the possibility of being excluded from benefits, and the technology for aggregating public supply--determine what kinds of institutions and transnational actions are required for their provision and financing. For some public goods--especially for those for which the exclusion of nonpayers is not feasible--these properties are such that a public sector push is needed or the good will not be financed. This push can come from a supranational structure (such as the World Bank, the United Nations, or the European Union) that directly or indirectly collects the requisite fees from its members to underwrite international public goods (IPGs). To understand the role of international institutions in promoting IPGs, one must ascertain the nature of the good and whether it requires a push, a coax, or no assistance from a supranational structure or influential nation(s) and agents (such as charitable foundations). The transnational community should explicitly direct scarce resources only to those global and international public goods that need either a significant push or only a smaller coax by the transnational community. When clubs or markets can finance international public goods, the community should sit back and let incentives guide the actions of sovereign nations.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2638.

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Date of creation: 31 Jul 2001
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Handle: RePEc:wbk:wbrwps:2638

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Keywords: Decentralization; Environmental Economics&Policies; Economic Theory&Research; Labor Policies; Payment Systems&Infrastructure; Environmental Economics&Policies; Economic Theory&Research; Economic Stabilization; Public Sector Economics&Finance; Carbon Policy and Trading;

References

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  1. Sandler, Todd, 1999. "Intergenerational Public Goods: Strategies, Efficiency, and Institutions," Staff General Research Papers 1531, Iowa State University, Department of Economics.
  2. Todd Sandler, 1998. "Global and regional public goods: a prognosis for collective action," Fiscal Studies, Institute for Fiscal Studies, Institute for Fiscal Studies, vol. 19(3), pages 221-247, August.
  3. Todd Sandler & Keith Sargent, 1995. "Management of Transnational Commons: Coordination, Publicness, and Treaty Formation," Land Economics, University of Wisconsin Press, vol. 71(2), pages 145-162.
  4. Sandler,Todd & Hartley,Keith, 1999. "The Political Economy of NATO," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521638807.
  5. Sandler, Todd, 1977. "Impurity of Defense: An Application to the Economics of Alliances," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 30(3), pages 443-60.
  6. Warr, Peter G., 1983. "The private provision of a public good is independent of the distribution of income," Economics Letters, Elsevier, Elsevier, vol. 13(2-3), pages 207-211.
  7. Jayaraman, Rajshri & Kanbur, Ravi, 1999. "International Public Goods and the Case for Foreign Aid," Working Papers, Cornell University, Department of Applied Economics and Management 127684, Cornell University, Department of Applied Economics and Management.
  8. Sandler,Todd, 1997. "Global Challenges," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521587495.
  9. Vicary, Simon & Sandler, Todd, 2002. "Weakest-link public goods: Giving in-kind or transferring money," European Economic Review, Elsevier, Elsevier, vol. 46(8), pages 1501-1520, September.
  10. Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521477185.
  11. Kanbur, Ravi & Sandler, Todd & Morrison, Kevin, 1999. "The Future of Development Assistance: Common Pools and International Public Goods," Staff General Research Papers 1629, Iowa State University, Department of Economics.
  12. Keith Hartley & Todd Sandler, 2001. "Economics of Alliances: The Lessons for Collective Action," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 869-896, September.
  13. Sandler, Todd & Buchholtz, Wolfgang & Haslbeck, Christian, 1998. "When Does Partial Cooperation Pay?," Staff General Research Papers 1215, Iowa State University, Department of Economics.
  14. Arce M., Daniel G. & Sandler, Todd, 2001. "Transnational public goods: strategies and institutions," European Journal of Political Economy, Elsevier, vol. 17(3), pages 493-516, September.
  15. Oakland, William H., 1972. "Congestion, public goods and welfare," Journal of Public Economics, Elsevier, Elsevier, vol. 1(3-4), pages 339-357, November.
  16. DeSerpa, Allan C, 1978. "Congestion, Pollution, and Impure Public Goods," Public Finance = Finances publiques, , , vol. 33(1-2), pages 68-83.
  17. Kevin Siqueira & Todd Sandler, 2001. "Models of alliances: Internalizing externalities and financing," Defence and Peace Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 12(3), pages 249-270.
  18. Olson, Mancur, Jr, 1969. "The Principle of "Fiscal Equivalence": The Division of Responsibilities among Different Levels of Government," American Economic Review, American Economic Association, American Economic Association, vol. 59(2), pages 479-87, May.
  19. Jack Hirshleifer, 1983. "From weakest-link to best-shot: The voluntary provision of public goods," Public Choice, Springer, Springer, vol. 41(3), pages 371-386, January.
  20. Buchholz, Wolfgang & Konrad, Kai A., 1995. "Strategic transfers and private provision of public goods," Journal of Public Economics, Elsevier, Elsevier, vol. 57(3), pages 489-505, July.
  21. Sandler, Todd & Tschirhart, John, 1997. "Club Theory: Thirty Years Later," Staff General Research Papers 1226, Iowa State University, Department of Economics.
  22. Cornes, Richard, 1993. "Dyke Maintenance and Other Stories: Some Neglected Types of Public Goods," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 108(1), pages 259-71, February.
  23. Small, Kenneth A., 1996. "Economies of Scale and Self-Financing Rules with Noncompetitive Factor Markets," University of California Transportation Center, Working Papers qt70m3c7hh, University of California Transportation Center.
  24. Murdoch, James C & Sandler, Todd & Sargent, Keith, 1997. "A Tale of Two Collectives: Sulphur versus Nitrogen Oxides Emission Reduction in Europe," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 64(254), pages 281-301, May.
  25. Kaul, Inge & Grunberg, Isabelle & Stern, Marc (ed.), 1999. "Global Public Goods: International Cooperation in the 21st Century," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780195130522, October.
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Citations

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Cited by:
  1. Bruno Boidin, 2005. "Droit à la santé et coopération internationale : les déficiences institutionnelles," Mondes en développement, De Boeck Université, De Boeck Université, vol. 129(1), pages 75-92.
  2. Laffont, Jean-Jacques & Martimort, David, 2005. "The design of transnational public good mechanisms for developing countries," Journal of Public Economics, Elsevier, Elsevier, vol. 89(2-3), pages 159-196, February.
  3. Abdulai, Awudu & Diao, Xinshen & Johnson, Michael, 2005. "Achieving regional growth dynamics in African agriculture," DSGD discussion papers, International Food Policy Research Institute (IFPRI) 17, International Food Policy Research Institute (IFPRI).

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