The Pure Theory of Public Goods: Efficiency, Decentralization, and the Core
We extend the results of Mas-Colell (1980) and Weber and Wiesmeth (1991) on valuation equilibria and the relationship of cost share equilibria with the core. We allow for any finite number of private goods and a set of public projects without any structure. We show the two welfare theorems for valuation equilibrium, the inclusion of the set of cost share equilibria in the core, and the nonequivalence of these two sets for an economy with a finite number of agents. In the case that the set of public projects is endowed with a topological structure, we provide conditions under which the price system needed to decentralize a Pareto efficient allocation as a valuation equilibrium is continuous.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mas-Colell, Andreu, 1980. "Efficiency and Decentralization in the Pure Theory of Public Goods," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 625-41, June.
- Donald John Roberts, 1974.
"A Note on Returns to Group Size and the Core with Public Goods,"
80, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Roberts, Donald John, 1974. "A note on returns to group size and the core with public goods," Journal of Economic Theory, Elsevier, vol. 9(3), pages 350-356, November.
- Vasilev, V. & Weber, S. & Wiesmeth, H., 1991.
"The Equivalence of Core and Lindahl Equilibria in an Economy with Semi- Public Goods,"
91-13, York (Canada) - Department of Economics.
- Valery Vasil'ev & Shlomo Weber & Hans Wiesmeth, 1991. "The Equivalence of Core and Lindahl Equilibria in an Economy with Semi-Public Goods," Discussion Paper Serie B 200, University of Bonn, Germany.
- Mas-Colell, Andreu & Silvestre, Joaquim, 1989. "Cost share equilibria: A Lindahlian approach," Journal of Economic Theory, Elsevier, vol. 47(2), pages 239-256, April.
- Wooders, Myrna Holtz, 1989. "A Tiebout theorem," Mathematical Social Sciences, Elsevier, vol. 18(1), pages 33-55, August.
- Weber, Shlomo & Wiesmeth, Hans, 1991. "The equivalence of core and cost share equilibria in an economy with a public good," Journal of Economic Theory, Elsevier, vol. 54(1), pages 180-197, June.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwppe:9403001. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)
If references are entirely missing, you can add them using this form.