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Voluntariness and efficiency in the provision of public goods
Authors:Joaquim Silvestre
Institution:University of California, Davis, CA 95616, U.S.A.;University Autónoma de Barcelona, Spain
Abstract:This paper presents a characterization of Lindahl allocations which makes no reference to personalized prices. Lindahl equilibria are characterized here by two conditions: Pareto efficiency and a voluntariness condition. Voluntariness requires that no consumer may benefit from a reduction in his contribution if this means that the vector of public goods must be reduced in the same proportion. The intersection of the (large) set of voluntary allocations and that of efficient ones turns out to be (under differentiability) the set of Lindahl allocations.
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