Skip to main content
eScholarship
Open Access Publications from the University of California

Independence of Allocative Efficiency from Distribution in the Theory of Public Goods

Abstract

When is the Pareto optimal amount of public goods independent of income distribution? Subject to some regularity conditions, the answer is when preferences of every individual i can be represented by a utility function of the form U(X_i,Y)=A(Y)X_i+B_i(Y) where X_i is i's consumption of private goods and Y is the amount of public goods.

Main Content
For improved accessibility of PDF content, download the file to your device.
Current View