Does the public sector over-provide club goods? A general result

Ali al-Nowaihi (aa10@le.ac.uk) and Clive Fraser (cdf2@le.ac.uk)

Economics Letters, 2012, vol. 117, issue 2, 397-400

Abstract: With nondistortionary user charges, the first best and second best of a single-club-exogenous-income economy with identical individuals coincide. They differ if incomes differ. Overprovision of a superior club good then occurs in the Second Best.

Keywords: Clubs; First best; Second best; Distribution; Distortion (search for similar items in EconPapers)
JEL-codes: D H1 H4 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:117:y:2012:i:2:p:397-400

DOI: 10.1016/j.econlet.2012.06.021

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