Mixed and Pure Public Goods, User Charges and Welfare

Timothy Muzondo

Working Paper from Economics Department, Queen's University

Abstract: This paper analyzes the optimal allocation of pure private, mixed and pure public goods in a framework which regards consumers both as producers of fundamental commodities which enter directly into their utility functions, and as utility maximizers. Externality and congestion phenomena are incorporated in the analysis. The formulation is consistent with the original formulation of public goods theory. Optimal user charges for mixed goods are derived and shown to be uniform for all individuals and computable independently of the forms of the individual utility functions. Under certain conditions optimal user charges cover the cost of providing mixed goods.

Pages: 21
Date: 1976
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:246

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