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Non-cooperative Behavior and Efficient Provision of Public Goods


  • Boadway, Robin
  • Pestieau, Pierre
  • Wildasin, David E


The authors show that, on the basis of a noncooperative equilibrium whereby pure public goods are financed by voluntary private contributions, a centralized agency may induce an efficient solution by an appropriate choice of subsidy on the individuals' contributions. They also show that a noncooperative equilibrium with positive contributions is efficient if, and only if, the individual per unit subsidies sum to n - 1, where n is the number of individuals. They finally establish a correspondence between noncooperative and Lindahl equilibria.

Suggested Citation

  • Boadway, Robin & Pestieau, Pierre & Wildasin, David E, 1989. "Non-cooperative Behavior and Efficient Provision of Public Goods," Public Finance = Finances publiques, , vol. 44(1), pages 1-7.
  • Handle: RePEc:pfi:pubfin:v:44:y:1989:i:1:p:1-7

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    References listed on IDEAS

    1. Clotfelter, Charles T., 1985. "Federal Tax Policy and Charitable Giving," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226110486.
    2. Charles T. Clotfelter, 1985. "Federal Tax Policy and Charitable Giving," NBER Books, National Bureau of Economic Research, Inc, number clot85-1, January.
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    Cited by:

    1. Hikaru Ogawa & David E. Wildasin, 2009. "Think Locally, Act Locally: Spillovers, Spillbacks, and Efficient Decentralized Policymaking," American Economic Review, American Economic Association, vol. 99(4), pages 1206-1217, September.
    2. Myrna Wooders & Ben Zissimos, 2003. "Hotelling Tax Competition," CESifo Working Paper Series 932, CESifo Group Munich.
    3. Zissimos, Ben & Wooders, Myrna, 2008. "Public good differentiation and the intensity of tax competition," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1105-1121, June.
    4. Zissimos, Ben & Wooders, Myrna, 2005. "Relaxing Tax Competition through Public Good Differentation," The Warwick Economics Research Paper Series (TWERPS) 737, University of Warwick, Department of Economics.
    5. Amedeo Fossati & Marcello Montefiori, 2011. "Adverse Selection in Elderly Care," DEP - series of economic working papers 7/2011, University of Genoa, Research Doctorate in Public Economics.
    6. Hikaru Ogawa, 2006. "Tax competition, spillovers, and subsidies," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(4), pages 849-858, December.
    7. Akai, Nobuo & Sato, Motohiro, 2011. "A simple dynamic decentralized leadership model with private savings and local borrowing regulation," Journal of Urban Economics, Elsevier, vol. 70(1), pages 15-24, July.
    8. Naoto Aoyama & Emilson C. D. Silva, 2010. "Equitable and Efficient Federal Structures with Decentralized Leadership, Spillovers, and Attachment of Heterogeneous Labor," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(2), pages 323-343, April.
    9. Caplan, Arthur J. & Cornes, Richard C. & Silva, Emilson C. D., 2000. "Pure public goods and income redistribution in a federation with decentralized leadership and imperfect labor mobility," Journal of Public Economics, Elsevier, vol. 77(2), pages 265-284, August.

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