Does the public sector over-provide club goods? A general result

With nondistortionary user charges, the first best and second best of a single-club-exogenous-income economy with identical individuals coincide. They differ if incomes differ. Overprovision of a superior club good then occurs in the Second Best.

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Year of publication:	2012
Authors:	al-Nowaihi, Ali ; Fraser, Clive D.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 117.2012, 2, p. 397-400
Publisher:	Elsevier
Subject:	Clubs \| First best \| Second best \| Distribution \| Distortion

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Type of publication:	Article
Classification:	D - Microeconomics ; H1 - Structure and Scope of Government ; H4 - Publicly Provided Goods
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010580446