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Contributions to International Public Goods and the Notion of Country Size

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  • Ratna K. Shrestha
  • James P. Feehan

Abstract

There is no consistent notion of country size in the literature on the voluntary provision of an international public good. This paper suggests preference-adjusted GNP as a useful index of size. Defining a country s size in that manner, contributing countries are unambiguously larger than free riders. But, interestingly, a larger contributing country does not necessarily contribute more than a smaller one. In the special case when all the contributing countries are of equal size, the one with stronger (weaker) preference for the public good will contribute less (more). In another special case when one of the countries is sufficiently larger than the rest, only this largest country will contribute. These results may help in explaining the diversity in cost-sharing across different international public goods.

Suggested Citation

  • Ratna K. Shrestha & James P. Feehan, 2002. "Contributions to International Public Goods and the Notion of Country Size," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 59(4), pages 551-559, December.
    • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(2002/200312)59:4_551:ctipga_2.0.tx_2-p
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    References listed on IDEAS

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    Cited by:

    1. Masayoshi Hayashi & Hiroshi Ohta, 2007. "Increasing marginal costs and satiation in the private provision of public goods: group size and optimality revisited," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(6), pages 673-683, December.
    2. Ratna K. Shrestha & Kwang Soo Cheong, 2007. "An Alternative Algorithm for Identifying Free Riders Based on a No-Free-Rider Nash Equilibrium," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 63(2), pages 278-284, June.
    3. Robert C. Schmidt & Moritz Drupp & Frikk Nesje & Hendrik Hoegen, 2022. "Testing the free-rider hypothesis in climate policy," Papers 2211.06209, arXiv.org.
    4. Keisuke Kawachi & Hikaru Ogawa, 2006. "Further Analysis on Public-Good Provision in a Repeated-Game Setting," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 62(3), pages 339-352, September.

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    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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