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Efficient private provision of public goods by rewarding deviations from average

Authors
Journal
Journal of Public Economics
0047-2727
Publisher
Elsevier
Publication Date
Volume
62
Issue
3
Identifiers
DOI: 10.1016/0047-2727(95)01549-3
Keywords
  • Public Goods
  • Efficient Private Provision
  • Voluntary Contributions
  • Non-Neutral Taxes And Subsidies
Disciplines
  • Political Science

Abstract

Abstract This paper proposes the following incentive scheme for the private provision of public goods: government should reward and penalize deviations from the mean contribution by an appropriate factor. This makes efficient contribution individually rational even if individuals see through the government budget constraint.

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