THE COMPARATIVE STATIC PROPERTIES OF THE IMPURE PUBLIC GOOD MODEL

Citation
R. Cornes et T. Sandler, THE COMPARATIVE STATIC PROPERTIES OF THE IMPURE PUBLIC GOOD MODEL, Journal of public economics, 54(3), 1994, pp. 403-421
Citations number
20
Categorie Soggetti
Economics
Journal title
ISSN journal
00472727
Volume
54
Issue
3
Year of publication
1994
Pages
403 - 421
Database
ISI
SICI code
0047-2727(1994)54:3<403:TCSPOT>2.0.ZU;2-R
Abstract
This paper explores the comparative static properties of the impure pu blic good model, in which a privately acquired activity jointly produc es a public and a private good. The comparative statics are expressed in terms of familiar income and Hicks-compensated price responses. Unl ike the pure public good model, the impure public model can display po sitively sloped reaction curves even in the absence of income effects. Comparative statics involve changes in price, or income, or the contr ibutions of others, or the proportions in which the joint products are produced. Our representation highlights the influences that make the impure public model different from the public good case.