Publicly Provided Private Goods and Redistribution: A General Equilibrium Analysis.
Public provision of private goods is examined within a self-selection framework where production depends on labor supply of different households and the level of public provision. It is shown that productivity and wage-structure effects can create a role for public provision, even if preferences are weakly separable between goods and leisure. Public provision of education may offer an intuitively appealing case for the production-side impacts. We also address the reasons for public provision in a dynamic, overlapping generations economy, whereby public provision may affect efficiency and social costs of redistribution of future generations as well. Copyright 2002 by The editors of the Scandinavian Journal of Economics.
Year of publication: |
2002
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Authors: | Pirttila, Jukka ; Tuomala, Matti |
Published in: |
Scandinavian Journal of Economics. - Wiley Blackwell, ISSN 1467-9442. - Vol. 104.2002, 1, p. 173-88
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Publisher: |
Wiley Blackwell |
Saved in:
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