On the Neutrality of Redistribution in a General Equilibrium Model with Public Goods

18 Pages Posted: 11 Dec 2007

See all articles by Antonio Villanacci

Antonio Villanacci

University of Florence

Ünal Zenginobuz

affiliation not provided to SSRN

Multiple version iconThere are 3 versions of this paper

Date Written: 2005-08-22

Abstract

Models on private provision of public goods typically involve a single private good and linear production technology for the public good. We study a model with several private goods and nonlinear (strictly concave) production technology. We revisit the question of neutrality of government interventions on equilibrium outcomes and show that relative price effects that are absent with a single private good and linear production technology become a powerful channel of redistribution in this case. Contrary to previous results, redistributing endowments in favor of contributors is shown to be neither necessary nor sufficient for increasing the equilibrium level of public good.

Suggested Citation

Villanacci, Antonio and ZENGINOBUZ, ÜNAL, On the Neutrality of Redistribution in a General Equilibrium Model with Public Goods (2005-08-22). Journal of Public Economic Theory, Vol. 9, Issue 2, pp. 183-200, April 2007, Available at SSRN: https://ssrn.com/abstract=1066056 or http://dx.doi.org/10.1111/j.1467-9779.2007.00303.x

Antonio Villanacci (Contact Author)

University of Florence ( email )

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Florence, 50121
Italy
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ÜNAL ZENGINOBUZ

affiliation not provided to SSRN

No Address Available

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