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Publicly Provided Private Goods and Redistribution: A General Equilibrium Analysis

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  • Jukka Pirttilä
  • Matti Tuomala

Abstract

Public provision of private goods is examined within a self‐selection framework where production depends on labour supply of different households and the level of public provision. It is shown that productivity and wage‐structure effects can create a role for public provision, even if preferences are weakly separable between goods and leisure. Public provision of education may offer an intuitively appealing case for the production‐side impacts. We also address the reasons for public provision in a dynamic, overlapping generations economy, whereby public provision may affect efficiency and social costs of redistribution of future generations as well. JEL classification: H23; H42

Suggested Citation

  • Jukka Pirttilä & Matti Tuomala, 2002. "Publicly Provided Private Goods and Redistribution: A General Equilibrium Analysis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(1), pages 173-188, March.
    • Handle: RePEc:bla:scandj:v:104:y:2002:i:1:p:173-188
    DOI: 10.1111/1467-9442.00277
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    Cited by:

    1. Hirvonen,Kalle Valtteri & Hoddinott,John, 2020. "Beneficiary Views on Cash and In-Kind Payments : Evidence from Ethiopia's Productive Safety," Policy Research Working Paper Series 9125, The World Bank.
    2. Jukka Pirttilä & Sanna Tenhunen, 2005. "Pawns and Queens Revisited: Public Provision of Private Goods When Individuals Make Mistakes Abstract: This paper analyses the optimal tax policy and public provision of private goods when individuals," Working Papers 212, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    3. Jukka Pirttilä & Ilpo Suoniemi, 2014. "Public Provision, Commodity Demand, and Hours of Work: An Empirical Analysis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(4), pages 1044-1067, October.
    4. Bastani, Spencer & Blomquist, Sören & Micheletto, Luca, 2010. "Public Provision of Private Goods, Tagging and Optimal Income Taxation with Heterogeneity in Needs," Working Paper Series, Center for Fiscal Studies 2010:14, Uppsala University, Department of Economics.
    5. Spencer Bastani & Firouz Gahvari & Luca Micheletto, 2022. "Nonlinear Taxation of Income and Education in the Presence of Income-Misreporting," CESifo Working Paper Series 9987, CESifo.
    6. Firouz Gahvari & Luca Micheletto, 2020. "Wage endogeneity, tax evasion, and optimal nonlinear income taxation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(3), pages 501-531, June.

    More about this item

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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