Publicly Provided Private Goods and Redistribution: A General Equilibrium Analysis

16 Pages Posted: 13 Dec 2002

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

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Abstract

Public provision of private goods is examined within a self-selection framework where production depends on labour 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.

Keywords: Optimal taxation, public provision, education, overlapping generations

JEL Classification: H23, H42

Suggested Citation

Pirttila, Jukka and Tuomala, Matti, Publicly Provided Private Goods and Redistribution: A General Equilibrium Analysis. Scandinavian Journal of Economics, Vol. 104, No. 1, pp. 173-188, 2002. Available at SSRN: https://ssrn.com/abstract=312938

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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