The Edgeworth Conjecture in a Public Goods Economy: An Elementary Example
We show by a simple example that in a public goods economy consisting of identical individuals with symmetric Cobb-Douglas preferences the core of the economy does not con-verge to the Lindahl solution when the number of agents goes to infinity. This confirms in an elementary way that the Edgeworth conjecture does not necessarily hold in an economy with a public good.
Volume (Year): 8 (2007)
Issue (Month): 6 ()
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