Public Provision of Private Goods: A Normative Approach
University of Eastern Piedmont - A. Avogadro - Department of Public Policy and Public Choice
This paper extends Boadway and Keen (1993)'s work in several ways, in particular by considering two public goods, a pure public good and a good with redistributive characteristics. Under this new characterisation, it shows that is still possible to join an allocation of goods which corresponds to the Samuelson Rule solution, but with more stringent conditions. Besides, it generalises these results by considering the probability for poor individuals to become sick. In this respect, it is more likely to observe a context in which a first best solution is effective.
Number of Pages in PDF File: 18
JEL Classification: H41, H51, I18
Date posted: August 3, 1998