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https://hdl.handle.net/10419/112687

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The advantage of being poor: private provision of public goods, strategic incentives and the role of public provision

[working paper]

Konrad, Kai A.

Corporate Editor
Universität München, Volkswirtschaftliche Fakultät

Abstract

When people know a public good is to be privately provided in the future, economic behavior may change in periods before the one with the private provision game. Individuals have an incentive to reduce their disposable income so as to shift the burden of provision to others. The incentive is reduc... view more

When people know a public good is to be privately provided in the future, economic behavior may change in periods before the one with the private provision game. Individuals have an incentive to reduce their disposable income so as to shift the burden of provision to others. The incentive is reduced if individuals know that the government will provide some of the public good, as long as this provison is large enough. In a second-best world, private provision of public goods has been claimed to be a reasonably good alternative to public provision. This claim needs to be reconsidered in the light of these results. (author's abstract)... view less

Keywords
poverty; nonmarket good; private provision; strategy; incentive system; public benefits; individual; economic behavior; economic situation; income; supply

Classification
Sociology of Economics
Social Problems

Document language
English

Publication Year
1992

City
München

Page/Pages
20 p.

Series
Münchener Wirtschaftswissenschaftliche Beiträge, 92-18

Handle
https://hdl.handle.net/10419/112687

Licence
Deposit Licence - No Redistribution, No Modifications


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Home  |  Legal notices  |  Operational concept  |  Privacy policy
© 2007 - 2025 Social Science Open Access Repository (SSOAR).
Based on DSpace, Copyright (c) 2002-2022, DuraSpace. All rights reserved.