Cabrales, Antonio and Lugo, Haydée (2011) An impure public good model with lotteries in large groups. [ Documentos de Trabajo del Instituto Complutense de Análisis Económico (ICAE); nº 05, 2011, ] (Unpublished)
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Official URL: http://eprints.ucm.es/12474/
Abstract
We analyze the effect of a large group on an impure public goods model with lotteries. We show that as populations get large, and with selfish preferences, the level of contributions converges to the one given by voluntary contributions. With altruistic preferences (of the warm glow type), the contributions converge to a level strictly higher than those given by voluntary contributions, even though in general they do not yield first-best levels.
| Item Type: | Working Paper or Technical Report |
|---|---|
| Uncontrolled Keywords: | Lotteries, Public good, Warm glow, Eficiency |
| Subjects: | Social sciences > Economics > Finance Social sciences > Economics > Public economy |
| JEL: | D64, H21, H41 |
| Series Name: | Documentos de Trabajo del Instituto Complutense de Análisis Económico (ICAE) |
| Volume: | 2011 |
| Number: | 05 |
| ID Code: | 12474 |
| References: |
Andreoni, J. (1989): "Giving with impure altruism: applications to charity and Ricardian equivalence," Journal of Political Economy, 97(6), 1447-1458. Andreoni, J. (1990): "Impure altruism and donations to public goods: A theory of warm-glow giving?," Economic Journal, 100(4), 464-477. Bergstrom, T., L. Blume, and H. Varian (1986): "On the Private Provision of Public Goods," Journal of Public Economics, 29, 25-49. Bergstrom, T., and R. Cornes (1983): "Independence of allocative eficiency from distribution in the theory of public goods," Econometrica, 51(6), 1753-1765. Borg, M. O., and P. M. Mason (1988): "The Budgetary Incidence of a Lottery to Support Education," National Tax Journal, 61, 75-85. Borg, M. O., P. M. Mason, and S. L. Shapiro (1991): The economic consequences of state lotteries. Praeger Press, New York, NY. Buchanan, J. (1963): "The Economics of Earmarked Taxes," Journal of Political Economy, 71, 457-469. Clotfelter, C. T., and P. P. Cook (1989): Selling hope, State lotteries in America. Harvard University Press, Cambridge, MA. Morgan, J. (2000): "Financing public goods by means of lotteries," The Review of Economic Studies, 67(4), 761-784. Temimi, A. (2001): "Does altruism mitigate free-riding and welfare loss?,"Economics Bulletin, 8(5), 1-8. |
| Deposited On: | 24 Mar 2011 15:07 |
| Last Modified: | 17 Jun 2016 11:31 |
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