Reconsideration of the Crowding-out Effect with Non-linear Contribution Technology

Keisuke Hattori

Economics Bulletin, 2003, vol. 8, issue 7, 1-10

Abstract: In this paper we reconsider the completely crowding-out effect in a model of the private provision of public goods with non-linear technology for government contributions. Even though there are no free-riders, government contributions financed by lump-sum taxes crowd out private contributions only marginally. We also investigate the relationship between desirable government policies and country size (the number of individuals). We show that equilibrium government contributions are unaffected by the change in the number of individuals in a no-free-rider economy.

Keywords: Country; size (search for similar items in EconPapers)
JEL-codes: H2 H4 (search for similar items in EconPapers)
Date: 2003-05-12
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