Bierbrauer, Felix ORCID: 0000-0003-3879-9607 and Winkelmann, Justus (2020). All or nothing: State capacity and optimal public goods provision. J. Econ. Theory, 185. SAN DIEGO: ACADEMIC PRESS INC ELSEVIER SCIENCE. ISSN 1095-7235
Full text not available from this repository.Abstract
We study public goods provision subject to ex post incentive and participation constraints. We also impose a requirement of anonymity. Different public goods can be bundled if sufficient resources are available. The analysis focuses on the all-or-nothing-mechanism: Expand provision as much as is resource feasible if no one vetoes - otherwise stick to the status quo. We show that the probability of the all-outcome converges to one as the capacity becomes unbounded. For a given finite capacity, we provide conditions under which the all-or-nothing-mechanism is ex ante welfare-maximizing - even though, ex post, it involves an overprovision of public goods. (C) 2019 Elsevier Inc. All rights reserved.
Item Type: | Journal Article | ||||||||||||
Creators: |
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URN: | urn:nbn:de:hbz:38-351900 | ||||||||||||
DOI: | 10.1016/j.jet.2019.104955 | ||||||||||||
Journal or Publication Title: | J. Econ. Theory | ||||||||||||
Volume: | 185 | ||||||||||||
Date: | 2020 | ||||||||||||
Publisher: | ACADEMIC PRESS INC ELSEVIER SCIENCE | ||||||||||||
Place of Publication: | SAN DIEGO | ||||||||||||
ISSN: | 1095-7235 | ||||||||||||
Language: | English | ||||||||||||
Faculty: | Faculty of Management, Economy and Social Sciences | ||||||||||||
Divisions: | Center of Excellence C-SEB Faculty of Management, Economics and Social Sciences > Economics > Macroeconomic, Financial and Economic Policy > Professorship for Macroeconomic |
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Subjects: | Economics | ||||||||||||
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Refereed: | Yes | ||||||||||||
URI: | http://kups.ub.uni-koeln.de/id/eprint/35190 |
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