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Club Efficiency and Lindahl Equilibrium with Semi-Public Goods

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  • Ten Raa, T.

    (Tilburg University, Center For Economic Research)

  • Gilles, R.P.

Abstract

Limit core allocations are the ones that remain in the core of a replicated economy. An equivalent notion for economies with public goods is Schweizer's club efficiency. We extend this notion to economies with goods that have a semi-public nature. The notion encompasses purely private as well as purely public club goods as polar cases. We show that given certain conditions the equivalence of club efficient allocations and Lindahl equilibria holds for a wide range of economies with semi-public club goods. We also show that extension to a more general class of economies seems implausible.

Suggested Citation

  • Ten Raa, T. & Gilles, R.P., 2000. "Club Efficiency and Lindahl Equilibrium with Semi-Public Goods," Discussion Paper 2000-08, Tilburg University, Center for Economic Research.
  • Handle: RePEc:tiu:tiucen:d688a825-f22d-4978-bd11-f1fbc09e38b0
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    References listed on IDEAS

    as
    1. Conley John P., 1994. "Convergence Theorems on the Core of a Public Goods Economy: Sufficient Conditions," Journal of Economic Theory, Elsevier, vol. 62(1), pages 161-185, February.
    2. Foley, Duncan K, 1970. "Lindahl's Solution and the Core of an Economy with Public Goods," Econometrica, Econometric Society, vol. 38(1), pages 66-72, January.
    3. Diamantaras, Dimitrios & Gilles, Robert P, 1996. "The Pure Theory of Public Goods: Efficiency, Dencentralization, and the Core," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(4), pages 851-860, November.
    4. Barham, V. & Wooders, M.H., 1994. "First and Second Welfare Theorems for Economies with Collective Goods," Working Papers 9415e, University of Ottawa, Department of Economics.
    5. Milleron, Jean-Claude, 1972. "Theory of value with public goods: A survey article," Journal of Economic Theory, Elsevier, vol. 5(3), pages 419-477, December.
    6. Roberts, Donald John, 1974. "The Lindahl solution for economies with public goods," Journal of Public Economics, Elsevier, vol. 3(1), pages 23-42, February.
    7. Schweizer, Urs, 1983. "Efficient Exchange with a Variable Number of Consumers," Econometrica, Econometric Society, vol. 51(3), pages 575-584, May.
    8. Wooders, Myrna, 1978. "Equilibria, the core, and jurisdiction structures in economies with a local public good," Journal of Economic Theory, Elsevier, vol. 18(2), pages 328-348, August.
    9. Andreu Mas-Colell, 1980. "Efficiency and Decentralization in the Pure Theory of Public Goods," The Quarterly Journal of Economics, Oxford University Press, vol. 94(4), pages 625-641.
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    More about this item

    Keywords

    clubs; club efficiency; Lindahl equilibrium; limit cores;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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