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Voluntary purchase of public goods

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  • Douglas Young

Abstract

This paper examines the application of Buchanan's ‘independent adjustment’ model of public good provision to individual donations to voluntary or non-profit organizations. An individual's donation function is a simple transformation of the Marshallian demand function; consequently donation functions ‘reveal,’ in principle, preferences for public goods. The existence of a tax-subsidy system sustaining a Pareto optimal level of provision is demonstrated, and the relationship to the existing subsidy scheme in the U.S. is examined. Finally, two implications of the model suggest that it is not appropriate as a representation of actual donor behavior. Copyright Martinus Nijhoff Publishers 1982

Suggested Citation

  • Douglas Young, 1982. "Voluntary purchase of public goods," Public Choice, Springer, vol. 38(1), pages 73-85, March.
    • Handle: RePEc:kap:pubcho:v:38:y:1982:i:1:p:73-85
    DOI: 10.1007/BF00124629
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    References listed on IDEAS

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    1. Groves, Theodore & Ledyard, John O, 1977. "Optimal Allocation of Public Goods: A Solution to the "Free Rider" Problem," Econometrica, Econometric Society, vol. 45(4), pages 783-809, May.
    2. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-1093, Nov.-Dec..
    3. Jeremias, Ronald & Zardkoohi, Asghar, 1976. "Distributional Implications of Independent Adjustments in an Economy with Public Goods," Economic Inquiry, Western Economic Association International, vol. 14(2), pages 305-308, June.
    4. Schwartz, Robert A, 1970. "Personal Philanthropic Contributions," Journal of Political Economy, University of Chicago Press, vol. 78(6), pages 1264-1291, Nov.-Dec..
    5. Martin McGuire, 1974. "Group size, group homo-geneity, and the aggregate provision of a pure public good under cournot behavior," Public Choice, Springer, vol. 18(1), pages 107-126, June.
    6. Mo-Yin Tam & Joseph Persky, 1978. "On the distributional implications of collective provision of public goods," Public Choice, Springer, vol. 33(1), pages 61-69, March.
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    Cited by:

    1. Jeffrey Weiss, 1985. "Can donations reduce a donor's welfare?," Public Choice, Springer, vol. 47(2), pages 337-347, January.
    2. Mark Koyama, 2012. "Prosecution Associations in Industrial Revolution England: Private Providers of Public Goods?," The Journal of Legal Studies, University of Chicago Press, vol. 41(1), pages 95-130.
    3. Michela Chessa & Patrick Loiseau, 2017. "Enhancing Voluntary Contribution in a Public Goods Economy via a Minimum Individual Contribution Level," GREDEG Working Papers 2017-24, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Feb 2023.
    4. Villanacci, Antonio & Zenginobuz, Ünal, 2012. "Subscription equilibrium with production: Non-neutrality and constrained suboptimality," Journal of Economic Theory, Elsevier, vol. 147(2), pages 407-425.

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