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In this note we analyse the provision of a pure public good with non constant production cost in the context of a federation of jurisdictions with two tiers of Government: the central and the local. The central government aims at welfare maximization but this objective is constrained to the use...
Persistent link: https://www.econbiz.de/10008752847
We consider a two group contest over a group specific public good comparing two situations: (i) where all players act independently; and (ii) where the players of each group cooperate. This comparison leads us to the conclusion that it is possible for one group to contribute more (and have a...
Persistent link: https://www.econbiz.de/10009645717
The purpose of this note is to correct an error in the seminal article on secession by Buchanan and Faith (1987). In their paper, Buchanan and Faith neglected the effect of political separation affects on markets, and consequently on individual private incomes.
Persistent link: https://www.econbiz.de/10010630245
A usual explanation to low levels of contribution to public goods is the fear of getting the sucker's payoff (cooperation by the participant and defection by the other players). In order to disentangle the effect of this fear from other motives, we design a public good game where people have an...
Persistent link: https://www.econbiz.de/10008563190
The purpose of this note is to correct an error in the seminal article on secession by Buchanan and Faith (1987). In their paper, Buchanan and Faith neglected the effect of political separation affects on markets, and consequently on individual private incomes.
Persistent link: https://www.econbiz.de/10005416952
This paper demonstrates that signaling motive may lead to many different time patterns of advertising. Therefore, it is … not possible to rule out signaling as an explanation for advertising by looking solely at the time patterns of price and …
Persistent link: https://www.econbiz.de/10010835863
This paper investigates the causes of municipalities secession in Brazil. We develop a model where the median voter decides on the creation of new municipalities observing the trade-off between loss of scale on public production and increase in federal transfers to his/her municipality. Voters...
Persistent link: https://www.econbiz.de/10011199636
The general purpose of this paper is to extend the literature regarding public good provision when consumers may contribute via consumption of an impure public good and/or by donating directly to the public good. Standard models pose consumer utility as a function of one impure public good and...
Persistent link: https://www.econbiz.de/10009003069
The siting of public facilities such as prisons or waste disposal facilities typically faces rejection by local populations (the "NIMBY" syndrome, for Not In My BackYard). These public goods exhibit a private bad aspect creating an asymmetry: all involved communities benefit from their...
Persistent link: https://www.econbiz.de/10008642754
When demand for a good exceeds its supply, queuing mechanisms are commonly used to allocate the good in question to citizens. However, very long queues result in excessive wait times and this can lead to violence. As such, the purpose of this paper is to analyze two stochastic models of goods...
Persistent link: https://www.econbiz.de/10008740707