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Public Goods, Voting, and Growth

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  • Kirill Borissov
  • Joseph Hanna

    ()

    (Laboratoire IDP, Universite de Valenciennes et du Hainaut-Cambresis)

  • Stephane Lambrecht

Abstract

We study a parametric politico-economic model of economic growth with productive public goods and public consumption goods. The provision of public goods is funded by a proportional tax on consumers' income. Agents are heterogeneous in their initial capital endowments, discount factors and the relative weights of public consumption in overall private utility. They vote on the shares of public goods in GDP. We propose a definition of voting equilibrium, prove the existence and provide a characterization of voting equilibria, and obtain a closed-form solution for the voting outcomes.

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Paper provided by European University at St. Petersburg, Department of Economics in its series EUSP Department of Economics Working Paper Series with number Ec-01/14.

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Length: 43 pages
Date of creation: 23 Feb 2014
Date of revision:
Handle: RePEc:eus:wpaper:ec0114
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Keywords: : intertemporal choice; growth; public goods; voting;

Find related papers by JEL classification:

  • D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
  • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
  • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
  • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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Cited by:

  1. Borissov, Kirill & Pakhnin, Mikhail & Puppe, Clemens, 2015. "On discounting and voting in a simple growth model," Working Paper Series in Economics 77, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.

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