Multi-National Public Goods Provision under Multilateral Income Transfers & Productivity Differences

Tatsuyoshi Miyakoshi and Laixun Zhao
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Tatsuyoshi Miyakoshi: Faculty of Science & Engineering, Hosei University, Japan

No DP2012-19, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This paper examines multinational public goods provision under multilateral income transfers and productivity differences across countries. We assume the existence of a planner who uses linear approximation for utility maximization for all countries. The main findings are: (i) A country is an income receiver if it has an advantage in producing public goods; (ii) the planner country can determine the values of transfers for all countries with an adjustment cost; (iii) all countries obtain an identical level of utility; (iv) the country with the lowest adjustment cost is the best candidate for the planner country. All results are derived based on well-known information regarding the cost of producing the public goods and on income levels.

Keywords: International public goods; Multilateral income transfers; Productivity difference; Planner; Adjustment cost; Welfare (search for similar items in EconPapers)
JEL-codes: F1 H41 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2012-07
New Economics Papers: this item is included in nep-dev
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