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Majority rule and the public provision of a private good

  • Miguel Gouveia

This paper extends the literature on the socialization of commodities by developing a model of voting over the public provision of a private good: health care. The private use of health care is modeled as a supplement rather than as an exclusive alternative to public health care. A majority rule equilibrium is shown to exist. The equilibrium characterization is an example of Director's Law of Income Redistribution. A ban on private health care activities is shown to be opposed by a majority of voters. Implications for the size and distribution of private health care expenditures are drawn. Copyright Kluwer Academic Publishers 1997

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File URL: http://hdl.handle.net/10.1023/A:1017929005280
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Article provided by Springer in its journal Public Choice.

Volume (Year): 93 (1997)
Issue (Month): 3 (December)
Pages: 221-244

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Handle: RePEc:kap:pubcho:v:93:y:1997:i:3:p:221-244
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100332

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