Existence of Share Equilibrium in Symmetric Local Public Good Economies

van den Nouweland, Anne; Wooders, Myrna H.

doi:10.2139/ssrn.2728516

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Existence of Share Equilibrium in Symmetric Local Public Good Economies

46 Pages Posted: 8 Feb 2016 Last revised: 17 Oct 2016

See all articles by Anne van den Nouweland

Anne van den Nouweland

University of Oregon - Department of Economics

Myrna H. Wooders

Vanderbilt University - College of Arts and Science - Department of Economics

There are 2 versions of this paper

Date Written: October 15, 2016

Abstract

Share equilibrium was introduced in van den Nouweland and Wooders (2011) as an extension of Lindahl's original equilibrium concept (Lindahl, 1919) to local public good economies. The current paper contains a comprehensive study of the possible share equilibrium outcomes of symmetric individuals, exposing the forces that shape equilibrium and explaining the circumstances under which symmetric individuals can potentially have different equilibrium share indices. We provide an existence result for symmetric economies and a characterization of symmetric economies that admit share equilibria.

Keywords: Share equilibrium, Local public goods, Cost shares, Core, Top convexity

JEL Classification: D7, C7

Suggested Citation: Suggested Citation

van den Nouweland, Anne and Wooders, Myrna H., Existence of Share Equilibrium in Symmetric Local Public Good Economies (October 15, 2016). Available at SSRN: https://ssrn.com/abstract=2728516 or http://dx.doi.org/10.2139/ssrn.2728516