Optimal Public Goods Provision: Implications of Endogenizing the Labor/Leisure Choice

Nicholas Flores and Philip Graves ()

Land Economics, 2008, vol. 84, issue 4, 701-707

Abstract: Conventional analysis of public goods provision aggregates individual willingness to pay while treating income as exogenous, ignoring the fact that we generate income to allow us to purchase utility-generating goods. We explore the implications of endogenizing the labor/leisure decision by explicitly considering leisure demand in a model of public goods provision. We consider benefit analysis of public goods provision and find that increments of the public good will generally be under-valued using conventional analysis while decrements to the public good (rare in public good settings) will be overvalued.

JEL-codes: C91 D61 Q51 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (7)

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Working Paper: Optimal public goods provision: implications of endogenizing the labor/leisure choice (2008)
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