Sharing the Cost of a Public Good without Subsidies

Marc Fleurbaey and Yves Sprumont

Journal of Public Economic Theory, 2009, vol. 11, issue 1, pages 1-8

Abstract: We study the construction of a social ordering function for the case of a public good financed by contributions from the population. We extend the analysis of Maniquet and Sprumont (2004) to the case when cost shares cannot be negative, i.e., agents cannot receive subsidies from others. We adapt the Maniquet-Sprumont defense of public good welfare egalitarianism to this context. Weakening their Free Lunch Aversion axiom and adding a continuity requirement allows us to characterize the public good welfare maximin social ordering function. Copyright © 2009 Wiley Periodicals, Inc..

Date: 2009

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