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We state efficiency conditions for the provision of congestable local public goods that diminish individual-specific proprietary risks. The optimum level of such a public service is determined by equating the sum of the reductions of the expected property losses due to a better service level...
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marriage as well as for a precautionary savings motive. …
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We develop a model of education where individuals face educational risk. Successfully entering the skilled labor sector … depends on individual effort in education and public resources, but educational risk still causes (income) inequality. We show …, because combining skill-specific tuition fees and public education spending provide both insurance and redistribution at lower …
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