The paper is intended to provide a theoretical contribution to the analysis of central government's normative economic policies in a framework where regional provision of goods with negative spillovers, and public goods used to reduce related externalities, are considered. Firstly the range of...

Most of the literature on government intervention in models where public goods are provided through voluntary contributions focuses on interventions that change the total level of a public good, which is known to be (almost always) underprovided relative to the "efficient" level. However,...

We prove existence and generic regularity of equilibria in a general equilibrium model of a completely decentralized pure public good economy. Competitive firms using private goods as inputs produce the public good, which is privately provided by households. Previous studies on private provision...

The purpose of this article is to report a new approach for measuring the general equilibrium willingness to pay for large changes in spatially delineated public goods such as air quality. We estimate the parameters of a locational equilibrium model and compute equilibria for alternative...

We analyze a general equilibrium model of a completely decentralized pure public good economy. Competitive firms using private goods as inputs produce the public good, which is privately provided by households. Previous studies on private provision of public goods typically use one private good,...

In a production economy, multiple public goods are produced by firms in competitive markets, and provided by the government together with contributions from consumers. There are widespread externalities: all consumers' consumption and contributions and all firms' production enter into utility...

Two small countries facing a constant probability of war with each other import arms for consumption goods from the rest of the world. The defense good, produced by combining arms and army, is a public good. The reaction curve depicting the optimal supply of the defense good turns out to be...

Public provision of private goods is examined within a self-selection framework where production depends on labour 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...

We compare general equilibrium economies in which building and maintenance of a depreciating public facility is financed either by anonymous voluntary contributions or by taxing agents on their income from private production. Agents start with an endowment of private goods and money, while the...

This paper studies the difference between public production and public finance of public goods in a dynamic general equilibrium setup. By public finance, we mean that the public good is produced by private providers with the government financing their costs. When the model is calibrated to match...