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On financing global and international public goods

  • Sandler, Todd

Three dimensions of public goods--nonrivalry of benefits, the possibility of being excluded from benefits, and the technology for aggregating public supply--determine what kinds of institutions and transnational actions are required for their provision and financing. For some public goods--especially for those for which the exclusion of nonpayers is not feasible--these properties are such that a public sector push is needed or the good will not be financed. This push can come from a supranational structure (such as the World Bank, the United Nations, or the European Union) that directly or indirectly collects the requisite fees from its members to underwrite international public goods (IPGs). To understand the role of international institutions in promoting IPGs, one must ascertain the nature of the good and whether it requires a push, a coax, or no assistance from a supranational structure or influential nation(s) and agents (such as charitable foundations). The transnational community should explicitly direct scarce resources only to those global and international public goods that need either a significant push or only a smaller coax by the transnational community. When clubs or markets can finance international public goods, the community should sit back and let incentives guide the actions of sovereign nations.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2638.

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Date of creation: 31 Jul 2001
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Handle: RePEc:wbk:wbrwps:2638
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  1. Oakland, William H., 1972. "Congestion, public goods and welfare," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 339-357, November.
  2. Vicary, Simon & Sandler, Todd, 2002. "Weakest-link public goods: Giving in-kind or transferring money," European Economic Review, Elsevier, vol. 46(8), pages 1501-1520, September.
  3. repec:cup:cbooks:9780521630931 is not listed on IDEAS
  4. repec:cup:cbooks:9780521583077 is not listed on IDEAS
  5. Sandler, Todd & Tschirhart, John, 1997. " Club Theory: Thirty Years Later," Public Choice, Springer, vol. 93(3-4), pages 335-55, December.
  6. Buchholz, Wolfgang & Konrad, Kai A., 1995. "Strategic transfers and private provision of public goods," Journal of Public Economics, Elsevier, vol. 57(3), pages 489-505, July.
  7. Small, Kenneth A., 1999. "Economies of scale and self-financing rules with non-competitive factor markets," Journal of Public Economics, Elsevier, vol. 74(3), pages 431-450, December.
  8. repec:cup:cbooks:9780521587495 is not listed on IDEAS
  9. Arce M., Daniel G. & Sandler, Todd, 2001. "Transnational public goods: strategies and institutions," European Journal of Political Economy, Elsevier, vol. 17(3), pages 493-516, September.
  10. Warr, Peter G., 1983. "The private provision of a public good is independent of the distribution of income," Economics Letters, Elsevier, vol. 13(2-3), pages 207-211.
  11. Jack Hirshleifer, 1983. "From weakest-link to best-shot: The voluntary provision of public goods," Public Choice, Springer, vol. 41(3), pages 371-386, January.
  12. Kaul, Inge & Grunberg, Isabelle & Stern, Marc (ed.), 1999. "Global Public Goods: International Cooperation in the 21st Century," OUP Catalogue, Oxford University Press, number 9780195130522, March.
  13. Murdoch, James C & Sandler, Todd & Sargent, Keith, 1997. "A Tale of Two Collectives: Sulphur versus Nitrogen Oxides Emission Reduction in Europe," Economica, London School of Economics and Political Science, vol. 64(254), pages 281-301, May.
  14. Sandler, Todd, 1977. "Impurity of Defense: An Application to the Economics of Alliances," Kyklos, Wiley Blackwell, vol. 30(3), pages 443-60.
  15. Olson, Mancur, Jr, 1969. "The Principle of "Fiscal Equivalence": The Division of Responsibilities among Different Levels of Government," American Economic Review, American Economic Association, vol. 59(2), pages 479-87, May.
  16. Sandler, Todd & Buchholtz, Wolfgang & Haslbeck, Christian, 1998. "When Does Partial Cooperation Pay?," Staff General Research Papers 1215, Iowa State University, Department of Economics.
  17. DeSerpa, Allan C, 1978. "Congestion, Pollution, and Impure Public Goods," Public Finance = Finances publiques, , vol. 33(1-2), pages 68-83.
  18. repec:cup:cbooks:9780521477185 is not listed on IDEAS
  19. Kanbur, Ravi & Sandler, Todd & Morrison, Kevin, 1999. "The Future of Development Assistance: Common Pools and International Public Goods," Staff General Research Papers 1629, Iowa State University, Department of Economics.
  20. Todd Sandler, 1998. "Global and regional public goods: a prognosis for collective action," Fiscal Studies, Institute for Fiscal Studies, vol. 19(3), pages 221-247, August.
  21. Cornes, Richard, 1993. "Dyke Maintenance and Other Stories: Some Neglected Types of Public Goods," The Quarterly Journal of Economics, MIT Press, vol. 108(1), pages 259-71, February.
  22. Keith Hartley & Todd Sandler, 2001. "Economics of Alliances: The Lessons for Collective Action," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 869-896, September.
  23. repec:cup:cbooks:9780521638807 is not listed on IDEAS
  24. Todd Sandler & Keith Sargent, 1995. "Management of Transnational Commons: Coordination, Publicness, and Treaty Formation," Land Economics, University of Wisconsin Press, vol. 71(2), pages 145-162.
  25. Jayaraman, Rajshri & Kanbur, Ravi, 1999. "International Public Goods and the Case for Foreign Aid," Working Papers 127684, Cornell University, Department of Applied Economics and Management.
  26. Sandler, Todd, 1999. "Intergenerational Public Goods: Strategies, Efficiency, and Institutions," Staff General Research Papers 1531, Iowa State University, Department of Economics.
  27. Kevin Siqueira & Todd Sandler, 2001. "Models of alliances: Internalizing externalities and financing," Defence and Peace Economics, Taylor & Francis Journals, vol. 12(3), pages 249-270.
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