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A comment on the role of prices for excludable public goods

  • Gilbert Metcalf

    ()

  • Jongsang Park

Blomquist and Christensen (2005) argue that welfare is initially decreasing in the price of an excludable public good and that the case for a positive public good price is weak. We argue that this result follows from their particular characterization of the public good and that a more reasonable characterization overturns their result. Hence the policy case for a positive price on the public good is stronger than Blomquist and Christiansen suggest. We also provide a more flexible characterization of public goods that nests a wide variety of public goods models.

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File URL: http://hdl.handle.net/10.1007/s10797-006-9016-6
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Article provided by Springer in its journal International Tax and Public Finance.

Volume (Year): 14 (2007)
Issue (Month): 6 (December)
Pages: 685-698

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Handle: RePEc:kap:itaxpf:v:14:y:2007:i:6:p:685-698
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