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Is Technological Progress Pareto-Improving for a World with Global Public Goods?
Authors:Keisuke Hattori
Institution:(1) Graduate School of Economics, Osaka University, 1-7 Machikaneyama, Toyonaka, Osaka 560-0043, Japan
Abstract:This paper investigates the welfare effects of unilateral or multilateral technological progress in a world with global public goods. We focus on the consumption relation between the private and the public good, and then show that technological progress may beldquoself-centeredrdquo (benefit oneself but harm others), ldquoself-sacrificingrdquo (harm oneself but benefit others), or ldquoself-defeatingrdquo (harm all) if two goods are substitutable. In addition, any type of technological progress improves every countryrsquos welfare if the private and the public good are close complements.
Keywords:private provision of public goods  technological progress  technological aid  immiserizing growth
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