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Government and the provision of public goods: from equilibrium models to mechanism design

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  • Monique Florenzano

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Focussing on their analysis of the optimal public goods provision problems, this paper follows the parallel development of equilibrium models and mechanism design after the accommodation of Samuelson's definition of collective goods to the general equilibrium framework. Both paradigms lead to the negative conclusion of the impossibility of a fully decentralized optimal public goods provision throught market or market-like institutions.

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  • Monique Florenzano, 2010. "Government and the provision of public goods: from equilibrium models to mechanism design," Post-Print halshs-00531464, HAL.
    • Handle: RePEc:hal:journl:halshs-00531464
    DOI: 10.1080/09672567.2010.499469
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00531464
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    More about this item

    Keywords

    general equilibrium; Lindahl-Foley equilibrium; Wicksell-Foley public competitive equilibrium; private provision equilibrium; mechanism design; free-rider problem; incentive compatibility; principal-agent models;
    All these keywords.

    JEL classification:

    • B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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