Egalitarian-Equivalent Cost Sharing of a Public Good

Herve Moulin

Econometrica, 1987, vol. 55, issue 4, 963-76

Abstract: In an economy with one public and one private good, egalitarian-equivalent cost sharing consists of finding the highest public good level, x*, such that consuming x* for free yields a feasible utility distribution. The corresponding feasible allocation (typically unique), called egalitarian-equivalent, is in the core of the economy. Conversely, any cost sharing method satisfying Pareto optimality, cost monotonicity (nobody suffers a utility loss if the production technology improves upon, ceteris paribus), and individual rationality (no single-agent coalition objects) or no private transfers (no agent receives a positive amount of private good), must select an egalitarian-equivalent allocation in every economy. Copyright 1987 by The Econometric Society.

Date: 1987
References: Add references at CitEc
Citations: View citations in EconPapers (55)

Downloads: (external link)
http://links.jstor.org/sici?sici=0012-9682%2819870 ... O%3B2-3&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecm:emetrp:v:55:y:1987:i:4:p:963-76

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Guido Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().