A Diagrammatic Demonstration of Public Crowding-Out of Private Contributions to Public Goods

Dennis Coates

The Journal of Economic Education, 1996, vol. 27, issue 1, 49-58

Abstract: A diagrammatic device is presented for teaching crowding-out in the provision of poor relief and public goods. It builds on the notiOn of Pareto-optimal income redistribution. The diagram shows how governmental attempts to redistribute income, or provide public services, crowd-out voluntary private efforts on a dollar-for-dollar basis.

Date: 1996
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DOI: 10.1080/00220485.1996.10844894

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