Download This PaperOptimal Allocation of Limited Funds in Quadratic Funding
8 Pages Posted: 4 Aug 2022 Last revised: 24 Aug 2022
Date Written: July 29, 2022
Abstract
We examine the allocation of a limited pool of matching funds to public good projects using Quadratic Funding. In particular, we consider a variation of the Capital Constrained Quadratic Funding (CQF) mechanism proposed by Buterin, Hitzig and Weyl (2019) where only funds in the matching pool are distributed among projects. We show that this mechanism achieves a socially optimal allocation of limited funds.
Keywords: quadratic funding, public goods
JEL Classification: D47, D61, D71, H41
Suggested Citation: Suggested Citation
Pasquini, Ricardo, Optimal Allocation of Limited Funds in Quadratic Funding (July 29, 2022). Available at SSRN: https://ssrn.com/abstract=4176411 or http://dx.doi.org/10.2139/ssrn.4176411
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