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Convexity Constraints In Public Goods Theory

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  • James M. Buchanan
  • Antonio. S. Pinto Barbosa

Abstract

Convexity constraints create problems in the theory of public goods that need not arise in the theory of private goods. This paper discusses these problems, which have not been fully recognized in the standard literature. The dimensionality of public goods becomes critical. A distinction must be made between consumption units, that enter as arguments in utility functions, and production units, which enter production functions, and which are directly purchased by the demanders. Standard convexity properties defined on consumption units need not imply convexity properties on production units, given standard properties of utility and production functions. The ambiguities are clarified by reference to the orthodox literature in public goods theory.

Suggested Citation

  • James M. Buchanan & Antonio. S. Pinto Barbosa, 1980. "Convexity Constraints In Public Goods Theory," Kyklos, Wiley Blackwell, vol. 33(1), pages 63-75, February.
    • Handle: RePEc:bla:kyklos:v:33:y:1980:i:1:p:63-75
    DOI: 10.1111/j.1467-6435.1980.tb02621.x
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