Problems of Financing Public Goods

21 Pages Posted: 14 Feb 2011 Last revised: 31 Jan 2014

See all articles by Hak Choi

Hak Choi

Chienkuo Technology University - Department of International Business; Chung-Hua Institution for Economic Research

Date Written: February 1, 2011

Abstract

Wicksell advocates unanimous consent for providing public goods. This paper reviews some existing works to fulfill Wicksell’s dream and proves that they are all ineffective. It then develops a model to solve for both the tax rate and the contribution simultaneously. It further proves that such solution, if any, is pure luck. The Wicksellian theory of direct government intervention is infeasible.

Keywords: Public goods, Free rider, Quid pro quo

JEL Classification: H41, H21

Suggested Citation

Choi, Hak, Problems of Financing Public Goods (February 1, 2011). Available at SSRN: https://ssrn.com/abstract=1759959 or http://dx.doi.org/10.2139/ssrn.1759959

Hak Choi (Contact Author)

Chienkuo Technology University - Department of International Business ( email )

No.1, Chiehsou N. Road
Changhua City, 500
Taiwan
+886 91 901-4618 (Phone)

HOME PAGE: http://euntold.wordpress.com

Chung-Hua Institution for Economic Research ( email )

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Taipei
Taiwan

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