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Volunteer work and club size: Nash equilibrium and optimality

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  • Barham, Vicky
  • Boadway, Robin
  • Marchand, Maurice
  • Pestieau, Pierre

Abstract

The non-cooperative provision of public goods is analysed in the context of a two-stage game in which club size is determined endogenously. Equilibrium club size and voluntary labour supply are shown to be inefficient. The impact of optimally-chosen fiscal policies using simple instruments is studied. When agents do not derive nonpecuniary benefits from volunteer work, lump-sum grants can be used to implement the first-best equal treatment allocation but private provision is fully crowded out. Otherwise, it is found that simple fiscal instruments cannot implement the first-best equal-treatment allocation unless club size is directly regulated.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

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  • Barham, Vicky & Boadway, Robin & Marchand, Maurice & Pestieau, Pierre, 1997. "Volunteer work and club size: Nash equilibrium and optimality," Journal of Public Economics, Elsevier, vol. 65(1), pages 9-22, July.
  • Handle: RePEc:eee:pubeco:v:65:y:1997:i:1:p:9-22
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    References listed on IDEAS

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    1. Bernheim, B Douglas, 1986. "On the Voluntary and Involuntary Provision of Public Goods," American Economic Review, American Economic Association, vol. 76(4), pages 789-793, September.
    2. Bengt Holmstrom, 1982. "Moral Hazard in Teams," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 324-340, Autumn.
    3. Bernheim, B Douglas & Bagwell, Kyle, 1988. "Is Everything Neutral?," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 308-338, April.
    4. Warr, Peter G., 1982. "Pareto optimal redistribution and private charity," Journal of Public Economics, Elsevier, vol. 19(1), pages 131-138, October.
    5. Boadway, Robin & Pestieau, Pierre & Wildasin, David, 1989. "Tax-transfer policies and the voluntary provision of public goods," Journal of Public Economics, Elsevier, vol. 39(2), pages 157-176, July.
    6. 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.
    7. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
    8. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
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    Cited by:

    1. Platteau, Jean-Philippe & Sekeris, Petros G., 2010. "On the feasibility of power and status ranking in traditional setups," Journal of Comparative Economics, Elsevier, vol. 38(3), pages 267-282, September.
    2. Desdoigts, Alain & Moizeau, Fabien, 2001. "Multiple politico-economic regimes, inequality and growth," SFB 373 Discussion Papers 2001,65, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    3. Jaramillo, Fernando & Kempf, Hubert & Moizeau, Fabien, 2003. "Inequality and club formation," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 931-955, May.
    4. Hubert Kempf & Fabien Moizeau, 2009. "Inequality, Growth, and the Dynamics of Social Segmentation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(4), pages 529-564, August.
    5. L.F.M. Groot & D.E. van der Linde, 2015. "The Labor Managed Firm: Permanent or Start Subsidies?," Working Papers 15-04, Utrecht School of Economics.
    6. Cugno, Franco & Ferrero, Mario, 2004. "Competition among volunteers," European Journal of Political Economy, Elsevier, vol. 20(3), pages 637-654, September.
    7. van de Ven, J., 2000. "The Economics of the Gift," Discussion Paper 2000-68, Tilburg University, Center for Economic Research.
    8. Ahn, T.K. & Isaac, R. Mark & Salmon, Timothy C., 2009. "Coming and going: Experiments on endogenous group sizes for excludable public goods," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 336-351, February.

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