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Matching as a cure for underprovision of voluntary public good supply: Analysis and an example

Buchholz, Wolfgang; Cornes, Richard; Rübbelke, Dirk - 2011

Matching mechanisms are regarded as an important instrument to bring about Pareto optimal allocations in a public good … interior matching equilibrium, however, emerges only under very special conditions. But we show in this note that corner …

Persistent link: https://www.econbiz.de/10010274970

Potentially harmful international cooperation on global public good provision

Buchholz, Wolfgang; Cornes, Richard; Rübbelke, Dirk - 2012

-called matching approaches. Matching schemes are regarded as providing a promising approach to overcome undersupply of public goods … like climate protection. The functioning of matching mechanisms in a setting with an incomplete agreement, i.e. a contract … by analyzing incomplete matching agreements in the context of international climate protection. We analyse their effect …

Persistent link: https://www.econbiz.de/10010283595

Pareto Improvement through Unilateral Matching of Public Good Contributions: The Role of Commitment

Buchholz, Wolfgang; Cornes, Richard; Peters, Wolfgang; … - 2014

When providing public goods through voluntary contributions, a donor may introduce unilateral matching in order to … reduce underprovision of the public good and thus inefficiency. By itself, however, matching benefits the donor but harms the …

Persistent link: https://www.econbiz.de/10010398655

Equal sacrifice and fair burden sharing in a public goods economy

Buchholz, Wolfgang; Peters, Wolfgang - 2007

Applying a willingness to pay approach known from contingent valuation in environmental economics, we develop an ordinally based measure for the size of individual sacrifice that is connected with an agent's contribution to a public good. We construct a selection mechanism that picks the unique...

Persistent link: https://www.econbiz.de/10010264129

Discounting and welfare analysis over time: choosing the [eta]

Buchholz, Wolfgang; Schumacher, Jan - 2008

Based on the Ramsey equation and an ethically motivated rejection of pure utility time discount, the Stern Review on the Economics of Climate Change concentrates on the use of the elasticity of marginal utility ç in the intergenerational social welfare function. We support this position by...

Persistent link: https://www.econbiz.de/10010264313

Discounting the long-distant future: a simple explanation for the Weitzman-Gollier-puzzle

Buchholz, Wolfgang; Schumacher, Jan - 2008

In this paper, we reconsider the debate on Weitzman's (1998) suggestion to discount the long-run future at the lowest possible rate, referring to Gollier (2004) and Hepburn & Groom (2007). We show that, while Weitzman's use of the present value approach may indeed seem questionable, its outcome,...

Persistent link: https://www.econbiz.de/10010264404

How changing prudence and risk aversion affect optimal saving

Bauer, Christian; Buchholz, Wolfgang - 2008

We show how optimal saving in a two-period model is affected when prudence and risk aversion of the underlying utility function change. Increasing prudence alone will induce higher savings only if, for certain combinations of the interest rate and the pure time discount rate, there is...

Persistent link: https://www.econbiz.de/10010264467

Equity as a prerequisite for stable cooperation in a public-good economy: The core revisited

Buchholz, Wolfgang; Peters, Wolfgang - 2010

In this paper we explore the relationship between an equitable distribution of the cost shares in public-good provision on the one hand and the core property of an allocation on the other. In particular we show that it is an inhomogeneous distribution of cost shares that motivates some coalition...

Persistent link: https://www.econbiz.de/10010270530

Characterizing the sustainability problem in an exhaustible resource model

Mitra, Tapan; Asheim, Geir B.; Buchholz, Wolfgang; … - 2012

The Dasgupta-Heal-Solow-Stiglitz model of capital accumulation and resource depletion poses the following sustainability problem: is it feasible to sustain indefinitely a level of consumption that is bounded away from zero? We provide a complete technological characterization of the...

Persistent link: https://www.econbiz.de/10010281450

Justifying the Lindahl solution as an outcome of fair cooperation

Buchholz, Wolfgang; Peters, Wolfgang - 2005

The Lindahl equilibrium is mostly motivated by a rather artificial price mechanism. Even though the analogy to a competitive market has been emphasised by Lindahl himself his approach does not directly explain the normative ideas, which are behind this concept. In the present paper we therefore...

Persistent link: https://www.econbiz.de/10010261328