IDEAS home Printed from https://ideas.repec.org/a/bla/ijethy/v15y2019i2p209-222.html
   My bibliography  Save this article

Optimal provision of public intermediate goods with imperfect competition: A note

Author

Listed:
  • Masatoshi Yoshida
  • Stephen J. Turnbull

Abstract

In a model where a public intermediate good and differentiated private intermediate goods produce a final good, this paper explores multiplier effects on aggregate output of the private goods of the public good, and the optimal level of government spending on it. When it provides a Hicks‐neutral enhancement of productivities of private inputs, its second‐best level is identical to its first‐best level because the multiplier effect is independent of its level. However, when the public good is non‐neutral, the second‐best supply level is lower (higher) than the first‐best when it is purely goods‐saving (labor‐saving).

Suggested Citation

  • Masatoshi Yoshida & Stephen J. Turnbull, 2019. "Optimal provision of public intermediate goods with imperfect competition: A note," International Journal of Economic Theory, The International Society for Economic Theory, vol. 15(2), pages 209-222, June.
    • Handle: RePEc:bla:ijethy:v:15:y:2019:i:2:p:209-222
    DOI: 10.1111/ijet.12165
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ijet.12165
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ijet.12165?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Masatoshi Yoshida & Stephen J. Turnbull, 2021. "Voluntary provision of environmental offsets under monopolistic competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(4), pages 965-994, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ijethy:v:15:y:2019:i:2:p:209-222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1742-7355 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.