Existence and Regularity of Equilibria in a General Equilibrium Model with Private Provision of a Public Good

18 Pages Posted: 12 Jan 2005

See all articles by Antonio Villanacci

Antonio Villanacci

University of Florence

Ünal Zenginobuz

Bogazici University - Department of Economics; Bogazici University - Center for Economic Design (CED)

Abstract

We prove existence and generic regularity of equilibria in a general equilibrium model of a completely decentralized pure public good economy. Competitive firms using private goods as inputs produce the public good, which is privately provided by households. Previous studies on private provision of public goods typically use one private good, one public good models in which the public good is produced through a constant returns to scale technology. As two distinguishing features of our model, we allow for the presence of several private goods and non-linear production technology. In that framework, we use an homotopy argument to prove existence of equilibria and we show that economies are generically regular.

Keywords: equilibrium existence, regularity, public goods

JEL Classification: D50, H41, H49

Suggested Citation

Villanacci, Antonio and Zenginobuz, Ünal, Existence and Regularity of Equilibria in a General Equilibrium Model with Private Provision of a Public Good (January 14, 2003). Available at SSRN: https://ssrn.com/abstract=608521 or http://dx.doi.org/10.2139/ssrn.608521

Antonio Villanacci

University of Florence ( email )

Piazza di San Marco, 4
Florence, 50121
Italy
(055) 4223944 (Fax)

Ünal Zenginobuz (Contact Author)

Bogazici University - Department of Economics ( email )

Bebek
Istanbul, TR 34342
Turkey
+90 212 359 65 05 (Phone)
+90 212 287 24 53 (Fax)

HOME PAGE: http://www.econ.boun.edu.tr/zobuz

Bogazici University - Center for Economic Design (CED) ( email )

Bogazici University
P.K. 2 Bebek
Istanbul, 34342
Turkey
+90 212 287 24 76 (Phone)
+90 212 287 24 53 (Fax)

HOME PAGE: http://www.ced.boun.edu.tr

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