Voluntary Contributions to Multiple Public Goods in a Production Economy with Widespread Externalities

30 Pages Posted: 4 May 2007

Date Written: September 2007

Abstract

In a production economy, multiple public goods are produced by firms in competitive markets, and provided by the government together with contributions from consumers. There are widespread externalities: all consumers' consumption and contributions and all firms' production enter into utility functions. Public goods can be imperfectly substitutes or complements, and they can be local public goods or club goods. Zero bounds that require consumers to make nonnegative contributions complicate the differentiable approach. Applying the transversality theorem for smooth economies in a regular parameterization, we obtain the existence of equilibrium in such an economy, and generically equilibria are regular and locally unique.

Keywords: Voluntary contributions, multiple public goods, widespread externalities, generic regularity

JEL Classification: C62, D51, H41

Suggested Citation

Kung, Fan-chin, Voluntary Contributions to Multiple Public Goods in a Production Economy with Widespread Externalities (September 2007). Available at SSRN: https://ssrn.com/abstract=980522 or http://dx.doi.org/10.2139/ssrn.980522

Fan-chin Kung (Contact Author)

East Carolina University ( email )

Brewster A438
Greenville, NC 27858
United States

HOME PAGE: http://myweb.ecu.edu/kungf/

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