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Voluntary contributions to multiple public goods in a production economy with widespread externalities

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  • Kung, Fan-chin

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 imperfect 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.

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  • Kung, Fan-chin, 2008. "Voluntary contributions to multiple public goods in a production economy with widespread externalities," Journal of Mathematical Economics, Elsevier, vol. 44(12), pages 1364-1378, December.
  • Handle: RePEc:eee:mateco:v:44:y:2008:i:12:p:1364-1378
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    Cited by:

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    3. Kenichi Suzuki & Tatsuyoshi Miyakoshi & Jun‐ichi Itaya & Akitomo Yamanashi, 2022. "Existence, uniqueness, and comparative statics of Nash equilibrium in a game of voluntary public good provision with two public goods," Metroeconomica, Wiley Blackwell, vol. 73(2), pages 567-582, May.
    4. Elena L. Mercato & Vincenzo Platino, 2017. "On the regularity of smooth production economies with externalities: competitive equilibrium à la Nash," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(1), pages 287-307, January.
    5. Ericson Richard E. & Kung Fan-chin, 2015. "Fundamental Non-convexity and Externalities: A Differentiable Approach," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 15(1), pages 49-62, January.
    6. Balasko, Yves, 2015. "Wealth concerns and equilibrium," Journal of Mathematical Economics, Elsevier, vol. 59(C), pages 92-101.

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