This note applies insights from a famous problem in price theory, "Shipping the Good Apples Out," to expand the comparative static predictions of the model of monetary donations and volunteering developed by Andreoni, Gale and Scotz (1996). we show that the Hicksian supply of volunteering may be...

Though the central government uses neither a transfer nor a regional allocation policy, it can affect the distribution of the population. This paper analyzes the optimal government policy and examines whether or not the government should take into account agglomeration without a regional...

Tiebout's basic claim was that when public goods are local, competition between jurisdictions solves the free riding problem in the sense that equilibria exist and are always Pareto efficient. Unfortunately, the literature does not quite support this conjecture. For finite economies, one must...

This article studies the equivalence between labor and consumption taxes in a stochastic context, where the government can undertake an active portfolio management strategy by investing in both risk-free and risky assets. Using a two-period model we have shown that such taxes let consumers make...

A usual explanation to low levels of contribution to public goods is the fear of getting the sucker's payoff (cooperation by the participant and defection by the other players). In order to disentangle the effect of this fear from other motives, we design a public good game where people have an...

We investigate a mixed duopoly market where a welfare-maximizing public firm competes against a profit-maximizing private firm, using a linear-city location-then-price model with linear transportation costs. We find that, compared with the results in the purely private duopoly case discussed by...

White (1996), Poyago-Theotoky (2001) and Myles (2002) prove that the optimal subsidy, equilibrium output level, all firms' profits and social welfare are identical before and after privatization of a public firm in a mixed oligopolistic market. We show that we can obtain these irrelevance...

We study how people's predisposition towards altruism affects their behavior in a voluntary contributions public good experiment. We investigate whether a high level of contributions can be sustained in groups of subjects who have been pre-selected on the basis of their altruistic inclinations....

This note shows that if commodities are tradable across jurisdictions, then it may be efficient to have heterogeneously sized jurisdictions, even if (i) consumers are identical, (ii) there is one private good and one public good, (iii) utility and production functions are not affected by...

In a simple OLG model, we introduce public services which work as a source of utility. Assuming constant returns to scale in the production, we show that public services promote the occurrence of local indeterminacy. In contrast to a lot of existing contributions which have exploited productive...