Skip to main content

Research Repository

Advanced Search

Privately provided public goods in a dynamic economy

Marsiliani, Laura; Renstroem, Thomas

Privately provided public goods in a dynamic economy Thumbnail


Authors

Thomas Renstroem



Abstract

We show that when individuals can save (accumulate capital), they all eventually becomepublic-good contributors. In steady state, larger economies have more contributors. If thepublic good is normal, then its quantity increases in population size in the open-loopequilibrium, but not necessarily in the feedback equilibrium. If both private and public goodsare normal, then the open-loop equilibrium exhibits greater steady-state public provision thanthe feedback equilibrium. If private consumption is inferior the opposite is true. Interpretingindividuals as countries, our findings suggest that all countries over time will becomecontributors toward a global public good.

Citation

Marsiliani, L., & Renstroem, T. (2010). Privately provided public goods in a dynamic economy

Publication Date Jan 1, 2010
Deposit Date Dec 7, 2012
Publicly Available Date Dec 7, 2012
Series Title Durham University Business School Economics Finance Accounting Working Papers
Keywords Private provision, Public goods, Dynamic, Intertemporal, differential game, JEL classifcation: C73 D91 E21 H40.
Public URL https://durham-repository.worktribe.com/output/1699649
Publisher URL http://www.dur.ac.uk/business/faculty/working-papers/

Files







You might also like



Downloadable Citations