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Optimality Conditions for Public and Private Goods

Author

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  • John A. Weymark

    (Duke University University of British Columbia)

Abstract

In general, the optimal provision of a good requires the simultaneous choice of (a)the optimal scale of output given the proportions in which consumers are allocated this total, and (b)the optimal consumption shares given the total available. With public goods the shares are not variable. The usual optimality conditions for private goods collapse (a) and (b) together. Here a general optimality rule for (a) is developed and related to the traditional efficiency rules for public and private goods.

Suggested Citation

  • John A. Weymark, 1979. "Optimality Conditions for Public and Private Goods," Public Finance Review, , vol. 7(3), pages 338-351, July.
    • Handle: RePEc:sae:pubfin:v:7:y:1979:i:3:p:338-351
    DOI: 10.1177/109114217900700305
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    References listed on IDEAS

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    1. DREZE, Jacques H., 1972. "A tâtonnement process for investment under uncertainty in private ownership economies," LIDAM Reprints CORE 124, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. GEVERS, Louis, 1974. "Competitive equilibrium of the stock exchange and Pareto efficiency," LIDAM Reprints CORE 198, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Albert Breton, 1974. "The economic theory of representative government: A reply," Public Choice, Springer, vol. 20(1), pages 129-133, December.
    4. Jacques H. Drèze, 1974. "Investment Under Private Ownership: Optimality, Equilibrium and Stability," International Economic Association Series, in: Jacques H. Drèze (ed.), Allocation under Uncertainty: Equilibrium and Optimality, chapter 9, pages 129-166, Palgrave Macmillan.
    5. Louis Gevers, 1974. "Competitive Equilibrium of the Stock Exchange and Pareto Efficiency," International Economic Association Series, in: Jacques H. Drèze (ed.), Allocation under Uncertainty: Equilibrium and Optimality, chapter 10, pages 167-191, Palgrave Macmillan.
    6. Jacques H. Drèze (ed.), 1974. "Allocation under Uncertainty: Equilibrium and Optimality," International Economic Association Series, Palgrave Macmillan, number 978-1-349-01989-2, June.
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    Cited by:

    1. Monique Florenzano, 2009. "Walras-Lindahl-Wicksell: What equilibrium concept for public goods provision ? I - The convex case," Post-Print halshs-00367867, HAL.
    2. John A. Weymark, 2004. "Shared Consumption : A Technological Analysis," Annals of Economics and Statistics, GENES, issue 75-76, pages 175-195.
    3. Monique Florenzano, 2009. "Walras-Lindahl-Wicksell: What equilibrium concept for public goods provision," Working Papers halshs-00531434, HAL.

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