Justifying the Lindahl solution as an outcome of fair cooperation
The Lindahl equilibrium is mostly motivated by a rather artificial price mechanism. Even though the analogy to a competitive market has been emphasised by Lindahl himself his approach does not directly explain the normative ideas, which are behind this concept. In the present paper we therefore show how the Lindahl equilibrium can be deduced from some simple equity axioms that in particular are related to the equal sacrifice principle and a non-envy postulate as norms for distributional equity. Fairness among agents with different preferences is taken into account by considering their marginal willingnesses to pay as virtual prices. In this way it might also become more understandable why the Lindahl solution can be perceived as an outcome of fair cooperation.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aaron, Henry & McGuire, Martin, 1970. "Public Goods and Income Distribution," Econometrica, Econometric Society, vol. 38(6), pages 907-20, November.
- 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.
- Moulin, Herve, 1987. "Egalitarian-Equivalent Cost Sharing of a Public Good," Econometrica, Econometric Society, vol. 55(4), pages 963-76, July.
- Brennan, Geoffrey, 1976. "The Distributional Implications of Public Goods," Econometrica, Econometric Society, vol. 44(2), pages 391-99, March.
- Hines Jr., James R., 2000. "What is benefit taxation?," Journal of Public Economics, Elsevier, vol. 75(3), pages 483-492, March.
- Bilodeau, Marc & Gravel, Nicolas, 2004.
"Voluntary provision of a public good and individual morality,"
Journal of Public Economics,
Elsevier, vol. 88(3-4), pages 645-666, March.
- M. Bilodeau & N. Gravel, 1997. "Voluntary provision of a public good and individual morality," THEMA Working Papers 97-31, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Bilodeau, M. & Gravel, N., 1997. "Voluntary Provision of a Public Good and Individual Morality," Papers 9731, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
- Silvestre, Joaquim, 1984. "Voluntariness and efficiency in the provision of public goods," Journal of Public Economics, Elsevier, vol. 24(2), pages 249-256, July.
- H. R. Varian, 1973.
"Equity, Envy and Efficiency,"
115, Massachusetts Institute of Technology (MIT), Department of Economics.
- Joaquim Silvestre, 2003. "Wicksell, Lindahl and the Theory of Public Goods," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(4), pages 527-553, December.
- Graciela Chichilnisky & Geoffrey Heal, 1993.
"Who Should Abate Carbon Emissions? An International Viewpoint,"
NBER Working Papers
4425, National Bureau of Economic Research, Inc.
- Chichilnisky, Graciela & Heal, Geoffrey, 1994. "Who should abate carbon emissions? : An international viewpoint," Economics Letters, Elsevier, vol. 44(4), pages 443-449, April.
- Louis Kaplow, 2003.
"Public Goods and the Distribution of Income,"
NBER Working Papers
9842, National Bureau of Economic Research, Inc.
- Engelmann Dirk & Strobel Martin, 2002.
"Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments,"
015, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Dirk Engelmann & Martin Strobel, 2004. "Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments," American Economic Review, American Economic Association, vol. 94(4), pages 857-869, September.
- Musgrave, R.A., 1985. "A brief history of fiscal doctrine," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 1, chapter 1, pages 1-59 Elsevier.
- repec:cup:cbooks:9780521823869 is not listed on IDEAS
- repec:cup:cbooks:9780521477185 is not listed on IDEAS
- Johansen, Leif, 1977. "The theory of public goods: Misplaced emphasis?," Journal of Public Economics, Elsevier, vol. 7(1), pages 147-152, February.
- Kovenock, Daniel & Sadka, Efraim, 1981. "Progression under the benefit approach to the theory of taxation," Economics Letters, Elsevier, vol. 8(1), pages 95-99.
- Anne van den Nouweland & Myrna H. Wooders & S. Tijs, 2002.
"Axiomatization of ratio equilibria in public good economies,"
Social Choice and Welfare,
Springer, vol. 19(3), pages 627-636.
- van den Nouweland, A. & Wooders, M.H., 2001. "Axiomatization of Ratio Equilibria in Public Good Economies," The Warwick Economics Research Paper Series (TWERPS) 585, University of Warwick, Department of Economics.
- Thum, Claudio & Weichenreider, Alfons J, 2000. " The Distributional Impact of Public Goods Provision: A Veil of Ignorance Approach," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(4), pages 737-46, December.
- Sato, Toshihiro, 1987. "Equity, fairness and lindahl equilibria," Journal of Public Economics, Elsevier, vol. 33(2), pages 261-271, July.
When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:133:y:2007:i:1:p:157-169. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.