The overprovision anomaly of private public good supply

Citation
W. Buchholz et W. Peters, The overprovision anomaly of private public good supply, J ECON, 74(1), 2001, pp. 63-78
Citations number
16
Categorie Soggetti
Economics
Journal title
JOURNAL OF ECONOMICS-ZEITSCHRIFT FUR NATIONALOKONOMIE
ISSN journal
09318658 → ACNP
Volume
74
Issue
1
Year of publication
2001
Pages
63 - 78
Database
ISI
SICI code
0931-8658(2001)74:1<63:TOAOPP>2.0.ZU;2-Q
Abstract
It is well known that private provision of a public good may lead to a high er supply than that in some Pareto optimal allocation. The traditional view attributes this "overprovision anomaly" to a specific kind of preferences. The present paper, however, show's that preferences do not play a decisive role. Assuming normality, overprovision will occur only if the distributio n of income is extremely skewed and Pareto optimal allocations are not with in the set of cost-share equilibria.