The Voluntary (Private) Production of Public Goods, the Gains from Trade and Comparative Advantage

REVIEW OF INTERNATIONAL ECONOMICS

Posted: 8 Nov 1996

See all articles by Albert G. Schweinberger

Albert G. Schweinberger

University of Konstanz - Faculty of Economics and Statistics

Abstract

Any (finite) number of privately produced public goods are incorporated into a general trade-theoretic model of private goods and factors. Postulating Cournot-Nash behavior a necessary condition for gainful trade is derived. Potential trade gains are related to the law of comparative advantage in private goods and the change in the underproduction ofpublic goods. A sufficient condition is also proven. Trade gains/losses are compared for more or less populous economies. All the results have analogues in the literature on imperfect competition and/or increasing returns to scale.

JEL Classification: F13

Suggested Citation

Schweinberger, Albert G., The Voluntary (Private) Production of Public Goods, the Gains from Trade and Comparative Advantage. REVIEW OF INTERNATIONAL ECONOMICS, Available at SSRN: https://ssrn.com/abstract=4408

Albert G. Schweinberger (Contact Author)

University of Konstanz - Faculty of Economics and Statistics ( email )

Universitaetsstr. 10
78457 Konstanz
Germany
++49 7531 88-2632 (Phone)
++49 7531 88-4119 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
468
PlumX Metrics