Models With Two Or More Public Goods
We extend the simple model of voluntary public good provision to allow for two or more public goods, and explore the new possibilities that arise in this setting. We show that, when there are many public goods, voluntary contribution equilibrium typically generates, not only too low a level of public good provision, but also the wrong mix of public goods. We also analyse the neutrality property in the more general setting, and extend a neutrality proposition of Bergstrom, Blume and Varian (1986). The first author would like to thank Professor Peter Bardsley and the Economic Theory Centre, University of Melbourne, for providing a very congenial period as a visitor, during which this paper was completed.
|Date of creation:||2004|
|Contact details of provider:|| Postal: Department of Economics, The University of Melbourne, 4th Floor, FBE Building, Level 4, 111 Barry Street. Victoria, 3010, Australia|
Phone: +61 3 8344 8560
Fax: +61 3 8344 6899
Web page: http://fbe.unimelb.edu.au/economics
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References listed on IDEAS
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- R. C. Cornes & A. G. Schweinberger, 1996.
"Free Riding and the Inefficiency of the Private Production of Pure Public Goods,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 29(1), pages 70-91, February.
- Schweinberger, Albert G. & Cornes, Richard, 1993. "Free riding and the inefficiency of the private production of pure public goods," Discussion Papers, Series II 201, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
- 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.
- Campbell, Donald E. & Truchon, Michel, 1988. "Boundary optima and the theory of public goods supply," Journal of Public Economics, Elsevier, vol. 35(2), pages 241-249, March.
- Myles,Gareth D., 1995. "Public Economics," Cambridge Books, Cambridge University Press, number 9780521497695, December.
- Kemp, Murray C., 1984. "A note of the theory of international transfers," Economics Letters, Elsevier, vol. 14(2-3), pages 259-262.
- Cornes, Richard & Sandler, Todd, 1985. "The Simple Analytics of Pure Public Good Provision," Economica, London School of Economics and Political Science, vol. 52(205), pages 103-116, February.
- Kanbur, S. M. R. & Myles, G. D., 1992. "Policy choice and political constraints," European Journal of Political Economy, Elsevier, vol. 8(1), pages 1-29, February. Full references (including those not matched with items on IDEAS)