Rotten Kids, Purity, and Perfection
Posted: 9 Dec 1999
Bergstrom has shown that Becker's "Rotten Kid theorem" holds in a world of two commodities if their utilities are transferable. The present paper identifies a further circumstance in which the theorem is valid. We show that it also holds in the absence of transferable utility if the externalities are assumed to take the form of a single pure public good.
JEL Classification: D19
Suggested Citation: Suggested Citation