Provision of public goods in a large economy

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1 Scopus citations

Abstract

In this paper, I consider a large economy with a private and a public good where the distribution of costs (but not the individual costs) associated with the provision of the public good is known. A simple tax-subsidy policy, whereby all contributors get a subsidy funded by a tax on non-contributors, is shown to attain the first best allocation provided that the socially optimal amount of the public good is independent of the distribution of individual costs.

Original languageEnglish
Pages (from-to)229-234
Number of pages6
JournalEconomics Letters
Volume61
Issue number2
DOIs
StatePublished - 1 Nov 1998

Keywords

  • H4
  • Provision of public goods

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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