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On the Private Provision of Two or More Public Goods

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  • RICHARD CORNES
  • JUN-ICHI ITAYA

Abstract

We extend the simple model of voluntary public good provision to allow for two or more public goods, and explore the new possibilities that arise in this setting. We show that, when there are many public goods, voluntary contribution equilibrium typically generates, not only too low a level of public good provision, but also the wrong mix of public goods. We also analyze the neutrality property in the more general setting, and extend a neutrality proposition of Bergstrom, Blume, and Varian (1986) . Copyright © 2010 Wiley Periodicals, Inc..

Suggested Citation

  • Richard Cornes & Jun-Ichi Itaya, 2010. "On the Private Provision of Two or More Public Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(2), pages 363-385, April.
  • Handle: RePEc:bla:jpbect:v:12:y:2010:i:2:p:363-385
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    References listed on IDEAS

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    1. R. C. Cornes & A. G. Schweinberger, 1996. "Free Riding and the Inefficiency of the Private Production of Pure Public Goods," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 70-91, February.
    2. Kemp, Murray C., 1984. "A note of the theory of international transfers," Economics Letters, Elsevier, vol. 14(2-3), pages 259-262.
    3. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    4. Cornes, Richard & Sandler, Todd, 1985. "The Simple Analytics of Pure Public Good Provision," Economica, London School of Economics and Political Science, vol. 52(205), pages 103-116, February.
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    Cited by:

    1. Emilson C.D. Silva, 2016. "Decentralized Leadership," CESifo Working Paper Series 6064, CESifo Group Munich.
    2. Faias, Marta & Moreno, Emma & Wooders, Myrna, 2009. "A Strategic market game approach for the private provision of public goods," MPRA Paper 37777, University Library of Munich, Germany, revised 08 Mar 2012.
    3. João Ricardo Faria & Emilson C.D. Silva, 2017. "Optimal Timing in Rotten Kid Families," CESifo Working Paper Series 6333, CESifo Group Munich.
    4. Kesternich, Martin & Goeschl, Timo & Lohse, Johannes & Römer, Daniel & Reif, Christiane, 2016. "An online experiment on cooperation and groupishness across urban districts," Annual Conference 2016 (Augsburg): Demographic Change 145848, Verein für Socialpolitik / German Economic Association.
    5. Richard Cornes & Jun-ichi Itaya & Aiko Tanaka, 2012. "Private provision of public goods between families," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1451-1480, October.
    6. Itaya, Jun-ichi & Mizushima, Atsue, 2016. "Should income inequality be praised? Multiple public goods provision, income distribution, and social welfare," Discussion paper series. A 298, Graduate School of Economics and Business Administration, Hokkaido University.
    7. Tatsuyoshi Miyakoshi & Laixun Zhao, 2012. "Multi-National Public Goods Provision under Multilateral Income Transfers & Productivity Differences," Discussion Paper Series DP2012-19, Research Institute for Economics & Business Administration, Kobe University.
    8. Faias, Marta & Moreno-García, Emma & Wooders, Myrna, 2015. "On neutrality with multiple private and public goods," Mathematical Social Sciences, Elsevier, vol. 76(C), pages 103-106.

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