IDEAS home Printed from https://ideas.repec.org/p/zbw/kondp2/201.html
   My bibliography  Save this paper

Free riding and the inefficiency of the private production of pure public goods

Author

Listed:
  • Schweinberger, Albert G.
  • Cornes, Richard

Abstract

Free riding is explained in a model of voluntary production of public goods, in terms of the heterogeneity of households. To achieve this the traditional essentially Ricardian model of voluntary production of pure public goods is generalised to comprise any number of private and public goods, factors of production and households. The efficiency losses from the under-production of public goods are related to the efficiency losses from free riding and the scale of the economy. A condition for Pareto improving reallocations within the public goods sector in terms of the popularity of the various public goods is put forward.

Suggested Citation

  • Schweinberger, Albert G. & Cornes, Richard, 1993. "Free riding and the inefficiency of the private production of pure public goods," Discussion Papers, Series II 201, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    • Handle: RePEc:zbw:kondp2:201
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/101513/1/746529236.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:bla:econom:v:52:y:1985:i:205:p:103-16 is not listed on IDEAS
    2. Jack Hirshleifer, 1983. "From weakest-link to best-shot: The voluntary provision of public goods," Public Choice, Springer, vol. 41(3), pages 371-386, January.
    3. Fries, Timothy L & Golding, Edward & Romano, Richard E, 1991. "Private Provision of Public Goods and the Failure of the Neutrality Property in Large Finite Economies," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(1), pages 147-157, February.
    4. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    5. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
    6. A. B. Atkinson & N. H. Stern, 1974. "Pigou, Taxation and Public Goods," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(1), pages 119-128.
    7. Lloyd, P. J. & Schweinberger, A. G., 1988. "Trade expenditure functions and the gains from trade," Journal of International Economics, Elsevier, vol. 24(3-4), pages 275-297, May.
    8. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Nakagawa, Shintaro, 2019. "On the Maximum Number of Players Voluntarily Contributing to Two or More Public Goods," MPRA Paper 92719, University Library of Munich, Germany.
    2. Rob Moir, 2004. "Lotteries as a funding tool for financing public goods," CEEL Working Papers 0401, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    3. Jun-ichi Itaya & Atsue Mizushima, 2016. "Should Income Inequality be Praised? Multiple Public Goods Provision, Income Distribution and Social Welfare," CESifo Working Paper Series 6215, CESifo.
    4. Lionel Richefort, 2018. "Warm-glow giving in networks with multiple public goods," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(4), pages 1211-1238, November.
    5. Lahiri, Sajal & Raimondos-Moller, Pascalis, 1998. "Public good provision and the welfare effects of indirect tax harmonisation," Journal of Public Economics, Elsevier, vol. 67(2), pages 253-267, February.
    6. Yann Rébillé & Lionel Richefort, 2014. "Networks of many public goods with non-linear best replies," Working Papers hal-01074708, HAL.
    7. Luigi Mittone & Francesca Bortolami, 2007. "Free riding and norms of control: self determination and imposition. An experimental comparison," CEEL Working Papers 0704, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    8. 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.
    9. Richard Cornes & Jun‐Ichi Itaya, 2010. "On the Private Provision of Two or More Public Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(2), pages 363-385, April.
    10. Karen Pittel & Dirk T.G. Rübbelke, 2006. "Private provision of public goods: incentives for donations," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 33(6), pages 497-519, November.
    11. Dasgupta, Indraneel & Kanbur, Ravi, 2003. "Bridging Communal Divides: Separation, Patronage, Integration," Working Papers 127235, Cornell University, Department of Applied Economics and Management.
    12. repec:hok:dpaper:298 is not listed on IDEAS
    13. Richard Cornes & Juni-ichi Itaya, 2004. "Models With Two Or More Public Goods," Department of Economics - Working Papers Series 896, The University of Melbourne.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Romano, Richard & Yildirim, Huseyin, 2001. "Why charities announce donations: a positive perspective," Journal of Public Economics, Elsevier, vol. 81(3), pages 423-447, September.
    2. TOSHIHIRO IHORI & MARTIN C. McGUIRE, 2007. "Collective Risk Control and Group Security: The Unexpected Consequences of Differential Risk Aversion," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(2), pages 231-263, April.
    3. Paul Pecorino, 2015. "Olson’s Logic of Collective Action at fifty," Public Choice, Springer, vol. 162(3), pages 243-262, March.
    4. Konrad, Kai A., 1998. "Local public goods and central charities," Regional Science and Urban Economics, Elsevier, vol. 28(3), pages 345-362, May.
    5. Huseyin Yildirim & Alvaro Name Correa, 2011. "A Theory of Charitable Fund-Raising with Costly Solicitations," Levine's Working Paper Archive 786969000000000222, David K. Levine.
    6. Echazu, Luciana & Nocetti, Diego, 2015. "Charitable giving: Altruism has no limits," Journal of Public Economics, Elsevier, vol. 125(C), pages 46-53.
    7. Diamond, Peter, 2006. "Optimal tax treatment of private contributions for public goods with and without warm glow preferences," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 897-919, May.
    8. Konrad, Kai A., 1992. "The advantage of being poor: private provision of public goods, strategic incentives and the role of public provision," EconStor Research Reports 112687, ZBW - Leibniz Information Centre for Economics.
    9. Zhiyong An, 2023. "On the marginal cost of public funds: the implications of charitable giving and warm glow," Fiscal Studies, John Wiley & Sons, vol. 44(3), pages 299-307, September.
    10. Pilar Useche, 2016. "Who Contributes to the Provision of Public Goods at the Community Level? The Case of Potable Water in Ghana," Development Policy Review, Overseas Development Institute, vol. 34(6), pages 869-888, November.
    11. Brunner, Eric & Sonstelie, Jon, 2003. "School finance reform and voluntary fiscal federalism," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2157-2185, September.
    12. Carvajal, Andrés & Song, Xinxi, 2022. "A simple(r) Lindahl solution to the provision of public goods with warm-glow: Efficiency and implementation," Economics Letters, Elsevier, vol. 211(C).
    13. Ekaterina Melnik & Jean-Benoît Zimmermann, 2015. "The We and the I: The Logic of Voluntary Associations," Working Papers halshs-01109609, HAL.
    14. Gronberg, Timothy J. & Luccasen, R. Andrew & Turocy, Theodore L. & Van Huyck, John B., 2012. "Are tax-financed contributions to a public good completely crowded-out? Experimental evidence," Journal of Public Economics, Elsevier, vol. 96(7-8), pages 596-603.
    15. Marc Daube & David Ulph, 2016. "Moral Behaviour, Altruism and Environmental Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 505-522, February.
    16. Gradstein, Mark, 1998. "Provision of public goods in a large economy," Economics Letters, Elsevier, vol. 61(2), pages 229-234, November.
    17. Ledyard, John O., "undated". "Public Goods: A Survey of Experimental Research," Working Papers 861, California Institute of Technology, Division of the Humanities and Social Sciences.
    18. Wang, Chengsi & Zudenkova, Galina, 2016. "Non-monotonic group-size effect in repeated provision of public goods," European Economic Review, Elsevier, vol. 89(C), pages 116-128.
    19. Marc Bilodeau & Al Slivinski, 1998. "Rational Nonprofit Entrepreneurship," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 7(4), pages 551-571, December.
    20. Mark Ottoni-Wilhelm & Lise Vesterlund & Huan Xie, 2017. "Why Do People Give? Testing Pure and Impure Altruism," American Economic Review, American Economic Association, vol. 107(11), pages 3617-3633, November.

    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:zbw:kondp2:201. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/fwkonde.html .

    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.