On the private provision of public goods
We consider a general model of the non-cooperative provision of a public good. Under very weak assumptions there will always exist a unique Nash equilibrium in our model. A small redistribution of wealth among the contributing consumers will not change the equilibrium amount of the public good. Howe...
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| Published in | Journal of public economics Vol. 29; no. 1; pp. 25 - 49 |
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| Main Authors | , , |
| Format | Journal Article |
| Language | English |
| Published |
Amsterdam
Elsevier B.V
01.02.1986
Elsevier Elsevier Sequoia S.A |
| Series | Journal of Public Economics |
| Subjects | |
| Online Access | Get full text |
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| Abstract | We consider a general model of the non-cooperative provision of a public good. Under very weak assumptions there will always exist a unique Nash equilibrium in our model. A small redistribution of wealth among the contributing consumers will not change the equilibrium amount of the public good. However, larger redistributions of wealth will change the set of contributors and thereby change the equilibrium provision of the public good. We are able to characterize the properties and the comparative statics of the equilibrium in a quite complete way and to analyze the extent to which government provision of a public good ‘crowds out’ private contributions. |
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| AbstractList | A general model of the noncooperative provision of a public good is considered. Warr (1983) has found that, when a single public good is provided at positive levels by private individuals, its provision is not affected by a redistribution of income. Kemp (1984) has proposed a way to extend Warr's results to the case of more than one public good. Warr's neutrality theorem is sharpened and generalized, and Kemp's neutrality result is improved. A unique Nash equilibrium will always exist in the model presented under very weak assumptions. A small redistribution of wealth among the contributing consumers will not change the equilibrium amount of the public good, but larger redistributions of wealth will change the set of contributors and thus change the equilibrium provision of the public good. It is possible to characterize the properties and the comparative statics of the equilibrium in a somewhat complex way and to analyze the degree to which government provision of a public good excludes private contributions. We consider a general model of the non-cooperative provision of a public good. Under very weak assumptions there will always exist a unique Nash equilibrium in our model. A small redistribution of wealth among the contributing consumers will not change the equilibrium amount of the public good. However, larger redistributions of wealth will change the set of contributors and thereby change the equilibrium provision of the public good. We are able to characterize the properties and the comparative statics of the equilibrium in a quite complete way and to analyze the extent to which government provision of a public good ‘crowds out’ private contributions. |
| Author | Varian, Hal Bergstrom, Theodore Blume, Lawrence |
| Author_xml | – sequence: 1 givenname: Theodore surname: Bergstrom fullname: Bergstrom, Theodore – sequence: 2 givenname: Lawrence surname: Blume fullname: Blume, Lawrence – sequence: 3 givenname: Hal surname: Varian fullname: Varian, Hal |
| BackLink | http://econpapers.repec.org/article/eeepubeco/v_3a29_3ay_3a1986_3ai_3a1_3ap_3a25-49.htm$$DView record in RePEc |
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| CODEN | JPBEBK |
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| Cites_doi | 10.1093/oxfordjournals.oep.a041601 10.2307/2232444 10.1016/0047-2727(82)90056-1 10.1086/261212 10.1007/BF00124629 10.1086/260266 10.2307/1959515 10.1016/0165-1765(84)90092-2 10.1007/BF00137902 10.2307/2553994 10.1007/BF00123940 10.1016/0047-2727(81)90013-X 10.1007/BF01718500 10.1007/BF01725793 10.2307/2297742 10.2307/2232704 10.1016/0165-1765(83)90087-3 |
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| References | Kim, Walker (BIB17) 1984; 43 Barro (BIB4) 1974; 82 Bergstrom, Varian (BIB6) 1985; 52 Chamberlin (BIB11) 1976; 26 Olson (BIB21) 1965 Chamberlin (BIB10) 1974; 68 Bernheim, Bagwell (BIB7) 1984 Cornes, Sandler (BIB13) 1985; 52 Abrams, Schmitz (BIB1) 1978; 33 Laffont (BIB18) 1982 Smith (BIB23) 1980; 70 Steinberg (BIB24) 1984 Kemp (BIB16) 1984 Warr (BIB26) 1982; 19 Andreoni (BIB2) 1985 Young (BIB28) 1982; 38 Cornes, Sandler (BIB12) 1984; 94 Borcherding (BIB8) 1977 McGuire (BIB20) 1974; 18 Kemp (BIB15) 1984; 14 Arrow, Arrow (BIB3) 1981; v. 1 Brennan, Pincus (BIB9) 1983; 35 Isaac, McCue, Plott (BIB14) 1982 Marwell, Ames (BIB19) 1981; 15 Roberts (BIB22) 1984; 92 Warr (BIB27) 1983; 13 Becker (BIB5) 1981 Sugden (BIB25) 1982 Arrow (10.1016/0047-2727(86)90024-1_BIB3_2) 1983; v. 1 Brennan (10.1016/0047-2727(86)90024-1_BIB9) 1983; 35 Arrow (10.1016/0047-2727(86)90024-1_BIB3_1) 1981 Steinberg (10.1016/0047-2727(86)90024-1_BIB24) 1984 Barro (10.1016/0047-2727(86)90024-1_BIB4) 1974; 82 Abrams (10.1016/0047-2727(86)90024-1_BIB1) 1978; 33 Bergstrom (10.1016/0047-2727(86)90024-1_BIB6) 1985; 52 Kemp (10.1016/0047-2727(86)90024-1_BIB15) 1984; 14 McGuire (10.1016/0047-2727(86)90024-1_BIB20) 1974; 18 Marwell (10.1016/0047-2727(86)90024-1_BIB19) 1981; 15 Roberts (10.1016/0047-2727(86)90024-1_BIB22) 1984; 92 Kim (10.1016/0047-2727(86)90024-1_BIB17) 1984; 43 Cornes (10.1016/0047-2727(86)90024-1_BIB12) 1984; 94 Becker (10.1016/0047-2727(86)90024-1_BIB5) 1981 Chamberlin (10.1016/0047-2727(86)90024-1_BIB10) 1974; 68 Chamberlin (10.1016/0047-2727(86)90024-1_BIB11) 1976; 26 Isaac (10.1016/0047-2727(86)90024-1_BIB14) 1982 Kemp (10.1016/0047-2727(86)90024-1_BIB16) 1984 Bernheim (10.1016/0047-2727(86)90024-1_BIB7) 1984 Sugden (10.1016/0047-2727(86)90024-1_BIB25) 1982 Smith (10.1016/0047-2727(86)90024-1_BIB23) 1980; 70 Cornes (10.1016/0047-2727(86)90024-1_BIB13) 1985; 52 Warr (10.1016/0047-2727(86)90024-1_BIB26) 1982; 19 Laffont (10.1016/0047-2727(86)90024-1_BIB18) 1982 Olson (10.1016/0047-2727(86)90024-1_BIB21) 1965 Warr (10.1016/0047-2727(86)90024-1_BIB27) 1983; 13 Young (10.1016/0047-2727(86)90024-1_BIB28) 1982; 38 Borcherding (10.1016/0047-2727(86)90024-1_BIB8) 1977 Andreoni (10.1016/0047-2727(86)90024-1_BIB2) 1985 |
| References_xml | – volume: 19 start-page: 131 year: 1982 end-page: 138 ident: BIB26 article-title: Pareto optimal redistribution and private charity publication-title: Journal of Public Economics contributor: fullname: Warr – volume: 94 start-page: 580 year: 1984 end-page: 598 ident: BIB12 article-title: Easy riders, joint production, and public goods publication-title: Economic Journal contributor: fullname: Sandler – volume: 14 start-page: 259 year: 1984 end-page: 262 ident: BIB15 article-title: A note on the theory of international transfers publication-title: Economic Letters contributor: fullname: Kemp – volume: 15 start-page: 295 year: 1981 end-page: 310 ident: BIB19 article-title: Economists free ride, does anyone else? publication-title: Journal of Public Economics contributor: fullname: Ames – volume: 33 start-page: 29 year: 1978 end-page: 41 ident: BIB1 article-title: The ‘crowding-out’ effect of government transfers on private charitable contributions publication-title: Public Choice contributor: fullname: Schmitz – volume: 43 start-page: 3 year: 1984 end-page: 24 ident: BIB17 article-title: The free rider problem: Experimental evidence publication-title: Public Choice contributor: fullname: Walker – volume: 68 start-page: 707 year: 1974 end-page: 716 ident: BIB10 article-title: Provision of collective goods as a function of group size publication-title: American Political Science Review contributor: fullname: Chamberlin – volume: 52 start-page: 103 year: 1985 end-page: 116 ident: BIB13 article-title: The simple analytics of pure public good provision publication-title: Economica contributor: fullname: Sandler – year: 1985 ident: BIB2 article-title: A theory of private donations to public goods: The egoistic contributor model publication-title: University of Michigan Working Paper contributor: fullname: Andreoni – volume: 82 start-page: 1095 year: 1974 end-page: 1117 ident: BIB4 article-title: Are government bonds net wealth? publication-title: Journal of Political Economy contributor: fullname: Barro – volume: 35 start-page: 351 year: 1983 end-page: 365 ident: BIB9 article-title: Government expenditure growth and resource allocation: The nebulous connection publication-title: Oxford Economic Papers contributor: fullname: Pincus – year: 1984 ident: BIB16 article-title: On the applicability and implementability of the finite compensation principle publication-title: Kobe Economics and Business Review contributor: fullname: Kemp – volume: 92 start-page: 136 year: 1984 end-page: 148 ident: BIB22 article-title: A positive model of private charity and wealth transfers publication-title: Journal of Political Economy contributor: fullname: Roberts – volume: 70 start-page: 584 year: 1980 end-page: 599 ident: BIB23 article-title: Experiments with a decentralized mechanism for public good decisions publication-title: American Economic Review contributor: fullname: Smith – year: 1977 ident: BIB8 article-title: The sources of growth of public expenditures in the United States, 1902–1970 publication-title: Budgets and bureaucrats: The sources of government growth contributor: fullname: Borcherding – start-page: 341 year: 1982 end-page: 350 ident: BIB25 article-title: On the economics of philanthropy publication-title: Economic Journal contributor: fullname: Sugden – year: 1981 ident: BIB5 article-title: A treatise on the family contributor: fullname: Becker – year: 1982 ident: BIB14 article-title: Nash equilibrium in public goods provision: Free riding in experimentally controlled markets publication-title: Working Paper No. 428 contributor: fullname: Plott – year: 1982 ident: BIB18 article-title: Cours de theorie microeconomique 1, Fondements de l'economie publique publication-title: Economica contributor: fullname: Laffont – volume: 18 start-page: 107 year: 1974 end-page: 126 ident: BIB20 article-title: Group homogeneity and aggregate provision of a pure public good under Cournot behavior publication-title: Public Choice contributor: fullname: McGuire – volume: 38 start-page: 73 year: 1982 end-page: 86 ident: BIB28 article-title: Voluntary purchase of public goods publication-title: Public Choice contributor: fullname: Young – volume: v. 1 year: 1981 ident: BIB3 article-title: Economic welfare and the economics of soviet socialism: Essays in honor of Abram Bergson publication-title: Optimal and voluntary income redistribution contributor: fullname: Arrow – year: 1984 ident: BIB7 article-title: Is everything neutral? The implications of intergenerational altruism in an overlapping generations model with marriage publication-title: Stanford University Working Paper contributor: fullname: Bagwell – year: 1965 ident: BIB21 article-title: The logic of collective action contributor: fullname: Olson – volume: 13 start-page: 207 year: 1983 end-page: 211 ident: BIB27 article-title: The private provision of a public good is independent of the distribution of income publication-title: Economic Letters contributor: fullname: Warr – year: 1984 ident: BIB24 article-title: Voluntary donations and public expenditures publication-title: V.P.I. and S.U. Economics Department Working Paper contributor: fullname: Steinberg – volume: 26 start-page: 59 year: 1976 end-page: 74 ident: BIB11 article-title: A diagrammatic exposition of the logic of collective action publication-title: Public Choice contributor: fullname: Chamberlin – volume: 52 start-page: 715 year: 1985 end-page: 718 ident: BIB6 article-title: When are Nash equilibria independent of the distribution of agents' characteristics? publication-title: Review of Economic Studies contributor: fullname: Varian – volume: 35 start-page: 351 year: 1983 ident: 10.1016/0047-2727(86)90024-1_BIB9 article-title: Government expenditure growth and resource allocation: The nebulous connection publication-title: Oxford Economic Papers doi: 10.1093/oxfordjournals.oep.a041601 contributor: fullname: Brennan – start-page: 341 year: 1982 ident: 10.1016/0047-2727(86)90024-1_BIB25 article-title: On the economics of philanthropy publication-title: Economic Journal doi: 10.2307/2232444 contributor: fullname: Sugden – volume: 19 start-page: 131 year: 1982 ident: 10.1016/0047-2727(86)90024-1_BIB26 article-title: Pareto optimal redistribution and private charity publication-title: Journal of Public Economics doi: 10.1016/0047-2727(82)90056-1 contributor: fullname: Warr – volume: 92 start-page: 136 year: 1984 ident: 10.1016/0047-2727(86)90024-1_BIB22 article-title: A positive model of private charity and wealth transfers publication-title: Journal of Political Economy doi: 10.1086/261212 contributor: fullname: Roberts – volume: 38 start-page: 73 year: 1982 ident: 10.1016/0047-2727(86)90024-1_BIB28 article-title: Voluntary purchase of public goods publication-title: Public Choice doi: 10.1007/BF00124629 contributor: fullname: Young – volume: 82 start-page: 1095 year: 1974 ident: 10.1016/0047-2727(86)90024-1_BIB4 article-title: Are government bonds net wealth? publication-title: Journal of Political Economy doi: 10.1086/260266 contributor: fullname: Barro – volume: 68 start-page: 707 year: 1974 ident: 10.1016/0047-2727(86)90024-1_BIB10 article-title: Provision of collective goods as a function of group size publication-title: American Political Science Review doi: 10.2307/1959515 contributor: fullname: Chamberlin – volume: v. 1 year: 1983 ident: 10.1016/0047-2727(86)90024-1_BIB3_2 contributor: fullname: Arrow – volume: 14 start-page: 259 issue: 2–3 year: 1984 ident: 10.1016/0047-2727(86)90024-1_BIB15 article-title: A note on the theory of international transfers publication-title: Economic Letters doi: 10.1016/0165-1765(84)90092-2 contributor: fullname: Kemp – volume: 43 start-page: 3 year: 1984 ident: 10.1016/0047-2727(86)90024-1_BIB17 article-title: The free rider problem: Experimental evidence publication-title: Public Choice doi: 10.1007/BF00137902 contributor: fullname: Kim – year: 1982 ident: 10.1016/0047-2727(86)90024-1_BIB18 article-title: Cours de theorie microeconomique 1, Fondements de l'economie publique publication-title: Economica contributor: fullname: Laffont – volume: 52 start-page: 103 year: 1985 ident: 10.1016/0047-2727(86)90024-1_BIB13 article-title: The simple analytics of pure public good provision publication-title: Economica doi: 10.2307/2553994 contributor: fullname: Cornes – year: 1984 ident: 10.1016/0047-2727(86)90024-1_BIB24 article-title: Voluntary donations and public expenditures publication-title: V.P.I. and S.U. Economics Department Working Paper contributor: fullname: Steinberg – volume: 33 start-page: 29 year: 1978 ident: 10.1016/0047-2727(86)90024-1_BIB1 article-title: The ‘crowding-out’ effect of government transfers on private charitable contributions publication-title: Public Choice doi: 10.1007/BF00123940 contributor: fullname: Abrams – volume: 15 start-page: 295 year: 1981 ident: 10.1016/0047-2727(86)90024-1_BIB19 article-title: Economists free ride, does anyone else? publication-title: Journal of Public Economics doi: 10.1016/0047-2727(81)90013-X contributor: fullname: Marwell – volume: 18 start-page: 107 year: 1974 ident: 10.1016/0047-2727(86)90024-1_BIB20 article-title: Group homogeneity and aggregate provision of a pure public good under Cournot behavior publication-title: Public Choice doi: 10.1007/BF01718500 contributor: fullname: McGuire – year: 1981 ident: 10.1016/0047-2727(86)90024-1_BIB3_1 article-title: Economic welfare and the economics of soviet socialism: Essays in honor of Abram Bergson contributor: fullname: Arrow – year: 1984 ident: 10.1016/0047-2727(86)90024-1_BIB7 article-title: Is everything neutral? The implications of intergenerational altruism in an overlapping generations model with marriage publication-title: Stanford University Working Paper contributor: fullname: Bernheim – volume: 26 start-page: 59 year: 1976 ident: 10.1016/0047-2727(86)90024-1_BIB11 article-title: A diagrammatic exposition of the logic of collective action publication-title: Public Choice doi: 10.1007/BF01725793 contributor: fullname: Chamberlin – year: 1985 ident: 10.1016/0047-2727(86)90024-1_BIB2 article-title: A theory of private donations to public goods: The egoistic contributor model publication-title: University of Michigan Working Paper contributor: fullname: Andreoni – year: 1977 ident: 10.1016/0047-2727(86)90024-1_BIB8 article-title: The sources of growth of public expenditures in the United States, 1902–1970 contributor: fullname: Borcherding – year: 1981 ident: 10.1016/0047-2727(86)90024-1_BIB5 contributor: fullname: Becker – year: 1984 ident: 10.1016/0047-2727(86)90024-1_BIB16 article-title: On the applicability and implementability of the finite compensation principle publication-title: Kobe Economics and Business Review contributor: fullname: Kemp – year: 1982 ident: 10.1016/0047-2727(86)90024-1_BIB14 article-title: Nash equilibrium in public goods provision: Free riding in experimentally controlled markets contributor: fullname: Isaac – volume: 52 start-page: 715 year: 1985 ident: 10.1016/0047-2727(86)90024-1_BIB6 article-title: When are Nash equilibria independent of the distribution of agents' characteristics? publication-title: Review of Economic Studies doi: 10.2307/2297742 contributor: fullname: Bergstrom – volume: 94 start-page: 580 year: 1984 ident: 10.1016/0047-2727(86)90024-1_BIB12 article-title: Easy riders, joint production, and public goods publication-title: Economic Journal doi: 10.2307/2232704 contributor: fullname: Cornes – volume: 70 start-page: 584 year: 1980 ident: 10.1016/0047-2727(86)90024-1_BIB23 article-title: Experiments with a decentralized mechanism for public good decisions publication-title: American Economic Review contributor: fullname: Smith – year: 1965 ident: 10.1016/0047-2727(86)90024-1_BIB21 contributor: fullname: Olson – volume: 13 start-page: 207 year: 1983 ident: 10.1016/0047-2727(86)90024-1_BIB27 article-title: The private provision of a public good is independent of the distribution of income publication-title: Economic Letters doi: 10.1016/0165-1765(83)90087-3 contributor: fullname: Warr |
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| Snippet | We consider a general model of the non-cooperative provision of a public good. Under very weak assumptions there will always exist a unique Nash equilibrium in... A general model of the noncooperative provision of a public good is considered. Warr (1983) has found that, when a single public good is provided at positive... |
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| Title | On the private provision of public goods |
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