Factor Endowments and the Private Provision of Public Goods
The paper examines the consequences of increasing the size of the community in the standard model of the private provision of public goods when costs are variable. In contrast to an economy with fixed costs, the provision of the public good can fall with a larger community, and an increased provision of the public good is neither a necessary nor a sufficient condition for individual utility to rise. The paper also contributes to the literature on immiserizing growth in that it shows that capital accumulation can possibly result in lower utility for all individuals. Copyright Blackwell Publishers Ltd and the Board of Trustees of the Bulletin of Economic Research, 2004.
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Volume (Year): 56 (2004)
Issue (Month): 2 (04)
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