Inequality, Market Imperfections, and Collective Action Problems

Pranab Bardhan and Maitreesh Ghatak.
Authors registered in the RePEc Author Service: Maitreesh Ghatak and Pranab K. Bardhan

No C99-108, Center for International and Development Economics Research (CIDER) Working Papers from University of California at Berkeley

Abstract: In this paper we analyze the effects of wealth inequality on the provision of public goods and management of common-property resources (CPR) when there are market imperfections in inputs that are complementary in production to the collective good. We show that for public goods inequality impedes efficiency, while for use of CPRs there is an inverse U-shaped relationship between inequality and efficiency. We discuss the implications of these theoretical results for redistributive policies such as land reform.

Date: 1999-09-01
New Economics Papers: this item is included in nep-cdm, nep-mic, nep-pol and nep-pub
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Related works:
Working Paper: Inequality, Market Imperfections, and Collective Action Problems (2000)
Working Paper: Inequality, Market Imperfections, and Collective Action Problems (1999)
Working Paper: Inequality, Market Imperfections, and Collective Action Problems (1999)
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