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Provision of a discrete public good with infinitely-many commodities

Author

Listed:
  • Francesco Ruscitti

    (John Cabot University, Department of Political and Social Sciences)

Abstract

Suppose a group of individuals must decide whether to undertake a public project. The private commodity space, from which are also drawn the inputs for the public good, exhibits the Riesz decomposition property. We give a sufficient condition for the existence of a feasible provision of the public good that Pareto-dominates inaction. The condition is that the `net benefit' from the public project be positive. If this condition is met, by the Riesz decomposition property the cost of the project can be decomposed into a sum of individual contributions or taxes so that the project can be `financed' and every agent retains a positive surplus.

Suggested Citation

  • Francesco Ruscitti, 2013. "Provision of a discrete public good with infinitely-many commodities," Economics Bulletin, AccessEcon, vol. 33(1), pages 28-34.
    • Handle: RePEc:ebl:ecbull:eb-12-00624
    as

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    References listed on IDEAS

    as
    1. MONIQUE FLORENZANO & ELENA L. Del MERCATO, 2006. "Edgeworth and Lindahl–Foley equilibria of a General Equilibrium Model with Private Provision of Pure Public Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(5), pages 713-740, December.
    2. Aliprantis, Charalambos D. & Brown, Donald J., 1983. "Equilibria in markets with a Riesz space of commodities," Journal of Mathematical Economics, Elsevier, vol. 11(2), pages 189-207, April.
    3. Maria Gabriella Graziano, 2007. "Economies With Public Projects: Efficiency And Decentralization," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(3), pages 1037-1063, August.
    4. De Simone, Anna & Graziano, Maria Gabriella, 2004. "The pure theory of public goods: the case of many commodities," Journal of Mathematical Economics, Elsevier, vol. 40(7), pages 847-868, November.
    5. Snyder, Susan K., 1999. "Testable restrictions of Pareto optimal public good provision," Journal of Public Economics, Elsevier, vol. 71(1), pages 97-119, January.
    6. Mas-Colell, Andreu, 1986. "The Price Equilibrium Existence Problem in Topological Vector Lattice s," Econometrica, Econometric Society, vol. 54(5), pages 1039-1053, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Public goods; efficient provision; reservation price; ordered vector spaces; Riesz decomposition property.;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • H4 - Public Economics - - Publicly Provided Goods

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