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An Approach to the Problem of Estimating Demand for Public Goods

In: The Economics of Environment

Author

Listed:
  • Peter Bohm

    (University of Stockholm)

Abstract

The purpose of this paper is to advance a procedure for estimating the demand for public goods (such as environmental quality) in the probably normal case where the authorities have no idea about the aggregate maximum willingness to pay in relation to costs nor about the willingness to pay in different consumer groups which are possible to distinguish from the taxation point of view. It is argued that the procedure advanced here will avoid creating incentives to misrepresent individual preferences. Moreover, it conforms to the real-world situation where an optimal payment or taxation distribution cannot be decided upon prior to estimation of demand.

Suggested Citation

  • Peter Bohm, 1971. "An Approach to the Problem of Estimating Demand for Public Goods," Palgrave Macmillan Books, in: Peter Bohm & Allen V. Kneese (ed.), The Economics of Environment, pages 94-105, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-01379-1_7
    DOI: 10.1007/978-1-349-01379-1_7
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    Citations

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    Cited by:

    1. Jesse Malkin & Aaron Wildavsky, 1991. "Why the Traditional Distinction between Public and Private Goods Should be Abandoned," Journal of Theoretical Politics, , vol. 3(4), pages 355-378, October.
    2. A. H. Barnett, 1981. "Soliciting Accurate Evaluations of Public Goods," Public Finance Review, , vol. 9(2), pages 221-234, April.
    3. Gersbach, Hans & Siemers, Lars, 2005. "Can Democracy Educate a Society?," IZA Discussion Papers 1693, Institute of Labor Economics (IZA).
    4. Dennis Mueller & Robert Tollison & Thomas Willett, 1972. "Representative democracy via random selection," Public Choice, Springer, vol. 12(1), pages 57-68, March.
    5. Bergstrom, John C. & Stoll, John R., 1986. "Structure, Conduct, And Performance In Contingent Markets," 1986 Annual Meeting, July 27-30, Reno, Nevada 278158, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Yang, Der-Yuan, 1997. "A Mechanism for Allocating the Expenses of Public Goods: Analyses of a Swedish Government Project," University of California at Santa Barbara, Economics Working Paper Series qt3mx5z1b4, Department of Economics, UC Santa Barbara.

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