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A Planning Approach to the Public Good Problem

  • E. Malinvaud

Abstract

The theory of planning should give new insight into the classical problem of how to achieve an optimal provision of public goods. The point is exhibited by a diagrammatic study of the simple model in which there are just two consumers and two commodities, one private, one public. Besides the procedure proposed by E. Lindahl, two others are discussed; the first uses tax indicators, the second quantity indicators. Consideration is given to three requirements: convergence to an optimum, equitable treatment of the two consumers, incentives for correct revelation of preferences.

Keywords

Demand Curve Marginal Rate Private Consumption Planning Approach Private Good 
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References

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    Drèze, J. & de la Vallée Poussin, D.: A tatonnement process for guiding and financing an efficient production of public goods. CORE Discussion Papers, no. 6922, July 1969.Google Scholar
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    Johansen, L.: Public Economics in particular section 6.2.2. North-Holland,Amsterdam, 1965. For a very enlight-ening discussion of Lindahl’s solution, see also “Some Notes on the Lindahl Theory of Determination of Public Ex-penditures”, International Economic Re-view September 1963.Google Scholar
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    Lindahl, E.: “Just taxation-A positive solution”, first published in German in 1919, reprinted in Classics in the Theory of Public Finance (ed. R. A. Musgrave & A. T. Peacock ). MacMillan, London, 1967.Google Scholar
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    Malinvaud, E.: “Procédures pour la détermination d’un programme de con-sommation collective” (mimeographed,INSEE, 1969) submitted to the Euro-pean Economic Review.Google Scholar
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    Malinvaud, E, E.: “The theory of plan ning for individual and collective con sumption” (mimeographed, INSEE, January 1970 ).Google Scholar
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Copyright information

© The Swedish Journal of Economics 1971

Authors and Affiliations

  • E. Malinvaud
    • 1
  1. 1.Institut National de la Statistique et des Etudes EconomiquesParisFrance

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