Multi-National Public Goods Provision under Multilateral Income Transfers & Productivity Differences
This paper examines multinational public goods provision under multilateral income transfers and productivity differences across countries. We assume the existence of a planner who uses linear approximation for utility maximization for all countries. The main findings are: (i) A country is an income receiver if it has an advantage in producing public goods; (ii) the planner country can determine the values of transfers for all countries with an adjustment cost; (iii) all countries obtain an identical level of utility; (iv) the country with the lowest adjustment cost is the best candidate for the planner country. All results are derived based on well-known information regarding the cost of producing the public goods and on income levels.
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- Richard Cornes & Jun-Ichi Itaya, 2010. "On the Private Provision of Two or More Public Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(2), pages 363-385, April.
- Jin Kim & Shim, Seungjin, 2006. "Incentive mechanisms for international public goods under uncertainty of production costs," Economics Letters, Elsevier, vol. 92(3), pages 311-316, September.
- Caplan, Arthur J. & Cornes, Richard C. & Silva, Emilson C. D., 2000. "Pure public goods and income redistribution in a federation with decentralized leadership and imperfect labor mobility," Journal of Public Economics, Elsevier, vol. 77(2), pages 265-284, August.
- Tatsuyoshi Miyakoshi, 2008. "A Planner of Global Income Transfers: International Public Goods and Productivity Differentials," Discussion Papers in Economics and Business 08-38, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP). Full references (including those not matched with items on IDEAS)
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