State Preferences and the Provision of Public Goods / Staatspräferenzen und die Bereitstellung öffentlicher Güter

Xenia Matschke

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2003, vol. 223, issue 6, 712-718

Abstract: Countries differ substantially in the emphasis on the public sector and the ratio between state consumption and provision of public goods. It seems that these differences are often not well explained by only assuming a heterogeneous population. In this paper, I take differing state preferences as given and investigate how changes in state preferences affect the provision of a public good. The provision of the public good is modelled as a two-stage game with the state and the citizens as players. I find that the Nash equilibrium provision of the public good is independent of a so-called "welfare state" parameter. In contrast, an increase in a parameter measuring the relative importance of public good provision vs. state consumption leads to an increase in the overall public good provision, while private provision declines.

Keywords: Public goods; state preferences; Öffentliche Güter; Staatspräferenzen (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:223:y:2003:i:6:p:712-718

DOI: 10.1515/jbnst-2003-0605

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