Rotten Kids, Purity, and Perfection

Posted: 9 Dec 1999

See all articles by Richard C. Cornes

Richard C. Cornes

Australian National University (ANU) - Faculty of Economics & Commerce; CESifo (Center for Economic Studies and Ifo Institute)

Emilson C. D. Silva

Tulane University

Abstract

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

Cornes, Richard C. and Silva, Emilson C. D., Rotten Kids, Purity, and Perfection. Available at SSRN: https://ssrn.com/abstract=184518

Richard C. Cornes (Contact Author)

Australian National University (ANU) - Faculty of Economics & Commerce ( email )

Canberra, Australian Capital Territory 2601
Australia

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Emilson C. D. Silva

Tulane University ( email )

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