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State Preferences and the Provision of Public Goods

Опубликовано на портале: 24-10-2007
Jahrbücher für Nationalökonomie und Statistik. 2003.  No. 223. P. 712-718. 
Тематический раздел:
Countries differ substantially in the emphasis on the public sector and the ratio between state consumption and provision of public goods. It seems that these differences are often not well explained by only assuming a heterogeneous population. In this paper, the author takes differing state preferences as given and investigates how changes in state preferences affect the provision of a public good. The provision of the public good is modelled as a two-stage game with the state and the citizens as players. The author finds that the Nash equilibrium provision of the public good is independent of a so-called "welfare state" parameter. In contrast, an increase in a parameter measuring the relative importance of public good provision vs. state consumption leads to an increase in the overall public good provision, while private provision declines.

Ссылки
статьи: http://web.uconn.edu/matschke/published-papers/state-pref.pdf
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