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This paper analyzes the private provision of public goods where consumers interact within a fixed network structure and may benefit only from their direct neighbors’ provisions. We present a proof for existence and uniqueness of a Nash equilibrium with general best-reply functions. Our...
Persistent link: https://www.econbiz.de/10014168474
We investigate the effects of inequality in wealth on the incentives to contribute to a public good when agents are inequity averse and may differ in ability. We show that equality may lead to a reduction of public good provision below levels generated by purely selfish agents. But introducing...
Persistent link: https://www.econbiz.de/10013129910
The paper studies in a simple, Downsian model of political competition how the private provision of public goods is affected when it is embedded in a system of democracy and redistributive taxation. Results show that the positive effect of inequality on public goods production, which Olson...
Persistent link: https://www.econbiz.de/10013146793
Studies of inequality often ignore resource allocation within the household. In doing so they miss an important element of the distribution of welfare that can vary dramatically depending on overall environmental and economic factors. Thus, measures of inequality that ignore intra household...
Persistent link: https://www.econbiz.de/10013053293
Using a threshold public good experiment, we examine how varying degrees of inequality in resources and differences in risk of loss among players affect the success of group efforts to avoid a common loss. We find that when the poor face greater risk than the rich, contributions and success in...
Persistent link: https://www.econbiz.de/10013326557
Support for a larger government has remained stable despite the growing inequality over the last 40 years in the US, which standard economic models of government size fail to predict. In this paper, we highlight the governmental role of public goods provision as a key political determinant of...
Persistent link: https://www.econbiz.de/10013215929
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...
Persistent link: https://www.econbiz.de/10013314755
The ever-growing population of India, along with the increasing competition for water for productive uses in different sectors - especially irrigated agriculture and related local water systems and drainage - poses a challenge in an effort to improve water quality and sanitation. In rural and...
Persistent link: https://www.econbiz.de/10011521116
The ever-growing population of India, along with the increasing competition for water for productive uses in different sectors – especially irrigated agriculture and related local water systems and drainage – poses a challenge in an effort to improve water quality and sanitation. In rural...
Persistent link: https://www.econbiz.de/10014126087
Waterborne diseases lead to over 6 billion diarrheal episodes per year, with most of the burden on children in low-income countries. We employ hydrological engineering principles to construct a novel measure of stagnant water, crucial to the spread of these diseases. Using a...
Persistent link: https://www.econbiz.de/10014390398