A Walrasian Voluntary Contribution to Public Goods Público
Riady, Howard (2011)
Published
Abstract
Abstract
A Walrasian Voluntary Contribution to Public Goods
by Howard Riady
This paper extends the standard model of voluntary provision of a
public good. In a simple
two-person economy with one public good which is provided through
voluntary contributions
and two private goods that are competitively traded in a general
equilibrium setting, I find
that the total level of the public good provided and the final
allocation of the private goods
are independent of income redistributions between consumers.
Table of Contents
Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 1
2 The Basic Model . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 4
2.1 An Extended Neutrality Result . . . . . . . . . . . . . . . . .
. . . . . . . 5
2.2 Sequential and Simultaneous Games . . . . . . . . . . . . . . .
. . . .11
3 Comparative Statics . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . .13
3.1 The Effect of Government Provision on Private Contributions . .
15
4 Extensions . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 17
4.1 Multiple Public Goods . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . 17
4.2 Leontief Production Function for the Public Good . . . . . . .
. . . 19
4.3 Impure Public Goods . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .20
5 Conclusion and Discussion . . . . . . . . . . . . . . . . . . . .
. . . . . . . 23
6 Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . .25
6.1 Appendix A . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 25
6.2 Appendix B . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 27
6.3 Appendix C . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 29
6.4 Appendix D . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 31
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