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On the Private Provision of Public Goods: A Diagrammatic Exposition

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  • Ley, E.

Abstract

This paper surveys a selection of the literature on the private provision of public goods using the Kolm triangle. (The Kolm triangle is the analogue of an Edgeworth box in an economy with a public good.) We provide simple geometrical proofs of various established results using this graphical device. Our reference framework is the model of private contributions to public goods developed by Bergstrom, Blume and Varian (1986). With the Kolm triangle, we can easily study the existence and uniqueness of Nash equilibria, the effects of redistribution of the initial wealth, the level of provision in Stackelberg equilibria, the effects of subsidizing private contributions, and the implementation of Lindahl equilibria.
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  • Ley, E., 1993. "On the Private Provision of Public Goods: A Diagrammatic Exposition," Papers 93-27, Michigan - Center for Research on Economic & Social Theory.
    • Handle: RePEc:fth:michet:93-27
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    References listed on IDEAS

    as
    1. Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, number beck81-1.
    2. Varian, H.R., 1989. "Sequential Provision Of Public Goods," Papers 89-17, Michigan - Center for Research on Economic & Social Theory.
    3. Chichilnisky, Graciela & Heal, Geoffrey, 1994. "Who should abate carbon emissions? : An international viewpoint," Economics Letters, Elsevier, vol. 44(4), pages 443-449, April.
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    7. Danziger, Leif, 1976. "A graphic representation of the Nash and Lindahl equilibria in an economy with a public good," Journal of Public Economics, Elsevier, vol. 6(3), pages 295-307, October.
    8. repec:bla:jpbect:v:1:y:1999:i:1:p:139-76 is not listed on IDEAS
    9. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    10. Dennis Sullivan & Harris Schlesinger, 1986. "Canons of Just Taxation: Efficiency and Fairness in an Economy with a Public Good," Public Finance Review, , vol. 14(4), pages 448-465, October.
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    18. Bergstrom, Ted, 1989. "Love and Spaghetti, the Opportunity Cost of Virtue," Journal of Economic Perspectives, American Economic Association, vol. 3(2), pages 165-173, Spring.
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    20. Gradstein, Mark & Nitzan, Shmuel & Slutsky, Steven, 1994. "Neutrality and the private provision of public goods with incomplete information," Economics Letters, Elsevier, vol. 46(1), pages 69-75, September.
    21. Schlesinger, Harris, 1989. "On the Analytics of Pure Public Good Provision," Public Finance = Finances publiques, , vol. 44(1), pages 102-109.
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    Citations

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    Cited by:

    1. Itaya, Jun-ichi & de Meza, David & Myles, Gareth D., 1997. "In praise of inequality: public good provision and income distribution," Economics Letters, Elsevier, vol. 57(3), pages 289-296, December.
    2. Wolfgang Buchholz & Richard Cornes & Dirk Rübbelke, 2020. "Matching in the Kolm triangle: interiority and participation constraints of matching equilibria," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(5), pages 1039-1050, April.
    3. Lechene, Valérie & Preston, Ian, 2011. "Noncooperative household demand," Journal of Economic Theory, Elsevier, vol. 146(2), pages 504-527, March.
    4. Eduardo Ley., "undated". "Public-good productivity differentials and non-cooperative public-good provision," Working Papers 97-02, FEDEA.
    5. Shrestha, Ram K. & Alavalapati, Janaki R. R., 2004. "Valuing environmental benefits of silvopasture practice: a case study of the Lake Okeechobee watershed in Florida," Ecological Economics, Elsevier, vol. 49(3), pages 349-359, July.
    6. David P. Myatt & Chris Wallace, 2005. "The Evolution of Teams," Palgrave Macmillan Books, in: Natalie Gold (ed.), Teamwork, chapter 4, pages 78-101, Palgrave Macmillan.
    7. Valerie Lechene & Ian Preston & University College London and Institute for Fiscal Studies, 2005. "Household Nash Equilibrium with Voluntarily Contributed Public Goods," Economics Series Working Papers 226, University of Oxford, Department of Economics.
    8. David P. Myatt & Chris Wallace, 2002. "Equilibrium Selection and Public Good Provision," Economics Series Working Papers 103, University of Oxford, Department of Economics.
    9. Valérie Lechene & Ian Preston, 2007. "Demand properties in household Nash equilibrium," IFS Working Papers W07/01, Institute for Fiscal Studies.
    10. Carmen Marcuello & Vicente Salas, 2001. "Nonprofit Organizations, Monopolistic Competition, and Private Donations: Evidence from Spain," Public Finance Review, , vol. 29(3), pages 183-207, May.
    11. Carmen Marcuello & Vicente Salas, 2000. "Money and time donations to Spanish Non Governmental Organizations for development aid," Investigaciones Economicas, Fundación SEPI, vol. 24(1), pages 51-73, January.
    12. Göran Bostedt, 1999. "Threatened Species as Public Goods and Public Bads," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(1), pages 59-73, January.

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    More about this item

    Keywords

    public services ; game theory;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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