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A Comment on the Role of Prices for Excludable Public Goods

  • Gilbert E. Metcalf
  • Jongsang Park

Blomquist and Christensen (2005) argue that welfare is initially decreasing in the price of an excludable public good and that the case for a positive public good price is weak. We argue that this result follows from their particular characterization of the public good and that a more reasonable characterization overturns their result. Hence the policy case for a positive price on the public good is stronger than Blomquist and Christiansen suggest. We also provide a more flexible characterization of public goods that nests a wide variety of public goods models.

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Paper provided by Department of Economics, Tufts University in its series Discussion Papers Series, Department of Economics, Tufts University with number 0524.

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Date of creation: 2005
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Handle: RePEc:tuf:tuftec:0524
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