Collective Choice and Voluntary Provision of Public Goods

Dennis Epple and Richard Romano

No 7802, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Some public goods are provided entirely with private contributions, others with a mixture of public and private funding, and still others are entirely publicly funded. To explain this variation, a model of dual provision is developed that endogenizes public and private funding. Members of the economy vote over an income tax that finances public supply of the good, and they vote on whether to permit private contributions. While permitting private contributions may lead to a reduction in total provision of the good, a majority always favors permitting private contributions. Results are developed for small and large economies, and the relevance of excludability and non-congestion are investigated. Comparative statics and computational analysis demonstrate properties of equilibrium.

JEL-codes: D78 H41 (search for similar items in EconPapers)
Date: 2000-07
New Economics Papers: this item is included in nep-cdm, nep-pbe, nep-pol and nep-pub
Note: CH PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as Epple, Dennis and Richard Romano. "Collective Choice And Voluntary Provision Of Public Goods," International Economic Review, 2003, v44(2,May), 545-572.

Downloads: (external link)
http://www.nber.org/papers/w7802.pdf (application/pdf)

Related works:
Journal Article: Collective Choice and Voluntary Provision of Public Goods (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:7802

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w7802

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().