On the neutrality of redistribution in a general equilibrium model with public goods

Antonio Villanacci () and Ünal Zenginobuz ()

MPRA Paper from University Library of Munich, Germany

Abstract: Models on private provision of public goods typically involve a single private good and linear production technology for the public good. We study a model with several private goods and non-linear (strictly concave) production technology. We revisit the question of “neutrality” of government interventions on equilibrium outcomes and show that relative price effects that are absent with a single private good and linear production technology become a powerful channel of redistribution in this case. Contrary to previous results, redistributing endowments in favor of contributors is shown to be neither necessary nor sufficient for increasing the equilibrium level of public good.

Keywords: public goods; private provision; neutrality results; general equilibrium (search for similar items in EconPapers)
JEL-codes: D51 H41 (search for similar items in EconPapers)
Date: 2001-05-05, Revised 2005-08-09
New Economics Papers: this item is included in nep-pbe
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: On the Neutrality of Redistribution in a General Equilibrium Model with Public Goods (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:190

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