Improving Public Good Supply and Income Equality: Facing a Trade-Off

It is explored in this paper how – depending on the agents’ preferences – an unequal income distribution may lead to a higher public good supply in a non-cooperative Nash equilibrium than in a cooperative Lindahl equilibrium that arises from a balanced income distribution. The degree of inequality that is needed for producing this result may be moderate what in particular is shown through an example with CES preferences.

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Year of publication:	2020
Authors:	Buchholz, Wolfgang ; Rübbelke, Dirk
Publisher:	Munich : Center for Economic Studies and Ifo Institute (CESifo)
Subject:	public good \| Nash equilibrium \| Lindahl equilibrium \| income distribution

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Series:	CESifo Working Paper ; 8786
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1743895399 [GVK] hdl:10419/229604 [Handle] RePec:ces:ceswps:_8786 [RePEc]
Classification:	D31 - Personal Income, Wealth and Their Distributions ; H41 - Public Goods ; Q54 - Climate; Natural Disasters
Source:	EconStor

Persistent link: https://www.econbiz.de/10012425692