Government versus Private Ownership of Public Goods: Experimental Evidence
David Kusterer and
No 13204, CEPR Discussion Papers from C.E.P.R. Discussion Papers
Who should own public projects? We report data from a laboratory experiment with 480 participants that was designed to test Besley and Ghatak's (2001) public-good version of the Grossman-Hart-Moore property rights theory. Consider two parties, one of whom can invest in the provision of a public good. The parties value the public good differently. Besley and Ghatak (2001) argue that more investments will be made if the high-valuation party is the owner, regardless of whether or not this party is the investor. While our experimental results provide support for the Grossman-Hart-Moore theory, they cast some doubts on the robustness of Besley and Ghatak's (2001) conclusion.
Keywords: Incomplete Contracts; Investment incentives; Laboratory experiments; Property rights; Public Goods (search for similar items in EconPapers)
JEL-codes: C92 D23 D86 H41 L33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cta, nep-exp and nep-ppm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at firstname.lastname@example.org
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:13204
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=13204
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().