The Samuelson condition and the Lindahl scheme in networks

Guang-Zhen Sun

Journal of Public Economics, 2017, vol. 156, issue C, 73-80

Abstract: We study optimal provision of public goods in the network, showing that the Samuelson condition and the Lindahl scheme can both be substantially extended to characterize the expenditure on such public goods. Couched in terms of the structure of the network, the extended Samuelson condition and Lindahl scheme formulate precisely how the local publicness of a local public good fundamentally determines its optimal provision and the personalized price that the Lindahl tax-payer faces. Independence of the optimal allocation from the distribution of resources at interior Samuelsonian solutions in the network generally fails to hold even for the Bergstrom-Cornes preferences.

Keywords: Local public goods; Network; The Samuelson condition; The Lindahl equilibrium; Adjacency matrix (search for similar items in EconPapers)
JEL-codes: C71 D61 H41 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S004727271730169X
Full text for ScienceDirect subscribers only

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:eee:pubeco:v:156:y:2017:i:c:p:73-80

DOI: 10.1016/j.jpubeco.2017.10.005

Access Statistics for this article

Journal of Public Economics is currently edited by R. Boadway and J. Poterba

More articles in Journal of Public Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().