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Private Provision of Public Goods between Families

Author

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  • CORNES, Richard
  • ITAYA, Jun-ichi
  • TANAKA, Aiko

Abstract

We consider a two-stage voluntary provision model where individuals in a family contribute to inter-family public goods, and, at the same time, the parent makes private transfers to her child within the same family. We show not only that Warr’s neutrality holds regardless of the different timings of parent-to-child transfers, but also that there is a continuum of Nash equilibria in the sense that individuals’ contributions and parental transfers are indeterminate, although the allocation of each’s private consumption and total public good provision is uniquely determined. We further show that, in the presence of impure altruism, neutrality and uniqueness of the equilibrium allocation persist.

Suggested Citation

  • CORNES, Richard & ITAYA, Jun-ichi & TANAKA, Aiko, 2007. "Private Provision of Public Goods between Families," Discussion paper series. A 194, Graduate School of Economics and Business Administration, Hokkaido University.
  • Handle: RePEc:hok:dpaper:194
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    File URL: https://hdl.handle.net/2115/30280
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    File URL: https://eprints.lib.hokudai.ac.jp/repo/huscap/all/30280/DPA194.pdf
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    Citations

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    Cited by:

    1. Marianna Baggio & Luigi Mittone, 2015. "Grandparents Matter: Perspectives on Intergenerational Altruism. An Experiment on Family Dynamic Spillovers in Public Goods Games," CEEL Working Papers 1502, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    2. Tilak Sanyal & Vivekananda Mukherjee, 2019. "On General and Specific Transfers for Child Support in Divorce," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(1), pages 197-213, March.

    More about this item

    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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