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Inequality, Market Imperfections, and Collective Action Problems

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  • Pranab Bardhan

    (University of California, Berkeley)

  • Maitreesh Ghatak

    (University of Chicago)

Abstract

In this paper we analyze the effects of wealth inequality on the provision of public goods and management of common-property resources (CPR) when there are market imperfections in inputs that are complementary in production to the collective good. We show that for public goods inequality impedes efficiency, while for use of CPRs there is an inverse U-shaped relationship between inequality and efficiency. We discuss the implications of these theoretical results for redistributive policies such as land reform.

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File URL: http://128.118.178.162/eps/pe/papers/0004/0004001.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Public Economics with number 0004001.

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Length: 25 pages
Date of creation: 04 Apr 2000
Date of revision:
Handle: RePEc:wpa:wuwppe:0004001

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Web page: http://128.118.178.162

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Cited by:
  1. Deininger, Klaus & May, Julian, 2000. "Can there be growth with equity : an initial assessment of land reform in South Africa," Policy Research Working Paper Series 2451, The World Bank.
  2. Jeff Dayton-Johnson & Pranab Bardhan, 2002. "Inequality And Conservation On The Local Commons: A Theoretical Exercise," Economic Journal, Royal Economic Society, vol. 112(481), pages 577-602, July.
  3. La Ferrara, Eliana, 2002. "Inequality and group participation: theory and evidence from rural Tanzania," Journal of Public Economics, Elsevier, vol. 85(2), pages 235-273, August.
  4. Deininger, Klaus & Yadav, Vandana, 2011. "Long-term Effects of Land Reform on Human Capital Accumulation: Evidence from West Bengal," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Baland, Jean-Marie & Platteau, Jean-Philippe, 2003. "Economics of common property management regimes," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 4, pages 127-190 Elsevier.
  6. Deininger, Klaus W. & Jin, Songqing & Yadav, Vandana, 2008. "Impact of Land Reform on Productivity, Land Value and Human Capital Investment: Household Level Evidence from West Bengal," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6277, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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