Publicly Provided Private Goods and Redistribution: A General Equilibrium Analysis

Scandinavian Journal of Economics, 02/2002; 104(1):173-88, 2002, DOI: 10.1111/1467-9442.00277

Posted: 6 Sep 2014

See all articles by Jukka Pirttila

Jukka Pirttila

United Nations - World Institute for Development Economics Research (UNU/WIDER); Tampere University of Technology

Matti Tuomala

University of Tampere

Multiple version iconThere are 2 versions of this paper

Date Written: February 1, 2002

Abstract

Public provision of private goods is examined within a self-selection framework where production depends on labor supply of different households and the level of public provision. It is shown that productivity and wage-structure effects can create a role for public provision, even if preferences are weakly separable between goods and leisure. Public provision of education may offer an intuitively appealing case for the production-side impacts. We also address the reasons for public provision in a dynamic, overlapping generations economy, whereby public provision may affect efficiency and social costs of redistribution of future generations as well.

Note: Copyright 2002 by the editors of the Scandinavian Journal of Economics.

Suggested Citation

Pirttila, Jukka and Tuomala, Matti, Publicly Provided Private Goods and Redistribution: A General Equilibrium Analysis (February 1, 2002). Scandinavian Journal of Economics, 02/2002; 104(1):173-88, 2002, DOI: 10.1111/1467-9442.00277 . Available at SSRN: https://ssrn.com/abstract=2491831

Jukka Pirttila (Contact Author)

United Nations - World Institute for Development Economics Research (UNU/WIDER) ( email )

Katajanokanlaituri 6B
Helsinki, FIN-00160
Finland

Tampere University of Technology ( email )

P.O. 541, Korkeakoulunkatu 8 (Festia building)
Tampere, FI-33101
Finland

Matti Tuomala

University of Tampere ( email )

P.O. Box 607
Tampere, FIN-33101
Finland
+358-3-2156031 (Phone)
+358-3-2157254 (Fax)

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