Inequality, Market Imperfections, and Collective Action Problems

Pranab K. Bardhan and Maitreesh Ghatak
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Maitreesh Ghatak: Department of Economics, University of Chicago

No 1014, Center for International and Development Economics Research, Working Paper Series from Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley

Abstract: In this paper we analyze the effects of wealth inequality on the provision of public goods and management of common-property resources (CPR) when there are market imperfections in inputs that are complementary in production to the collective good. We show that for public goods inequality impedes efficiency, while for use of CPRs there is an inverse U-shaped relationship between inequality and efficiency. We discuss the implications of these theoretical results for redistributive policies such as land reform.

Keywords: public goods; common property resources; inequality (search for similar items in EconPapers)
Date: 1999-09-01
Note: oai:cdlib1:iber/cider-1014
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Related works:
Working Paper: Inequality, Market Imperfections, and Collective Action Problems (2000)
Working Paper: Inequality, Market Imperfections, and Collective Action Problems (1999)
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Persistent link: http://EconPapers.repec.org/RePEc:cdl:ciders:1014

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