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Taxpayers, Suckers and Free Riders

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  • Anthony de Jasay

Abstract

In the traditional theory, resources for providing public goods will not be contributed voluntarily. The state's role is to exert mutually agreed coercion and organize Pareto-superior exchanges of public goods against taxes. `Government failures' spoil the attractions of this solution. In a more general theory, `excludability' is replaced by exclusion cost, and `joint supply' by access not subject to price or non-price allocation. The probability that one's benefit is contingent on one's contribution becomes a significant variable. Rational non- altruists will not generally have a dominant strategy of non-contribution. They may choose the `sucker' or the `free rider' strategy, depending on their assessment of the risk of having no or too few public goods.

Suggested Citation

  • Anthony de Jasay, 1993. "Taxpayers, Suckers and Free Riders," Journal of Theoretical Politics, , vol. 5(1), pages 117-125, January.
  • Handle: RePEc:sae:jothpo:v:5:y:1993:i:1:p:117-125
    DOI: 10.1177/0951692893005001006
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    References listed on IDEAS

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    1. Hampton, Jean, 1987. "Free-Rider Problems in the Production of Collective Goods," Economics and Philosophy, Cambridge University Press, vol. 3(2), pages 245-273, October.
    2. Richard Abel Musgrave, 1939. "The Voluntary Exchange Theory of Public Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 53(2), pages 213-237.
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    3. Vincent Geloso, 2022. "Statogenic climate change? Julian Simon and Institutions," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 35(3), pages 343-358, September.

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