A Theory of Local Public Goods Provision with Congestion: Destroy the Public Good to Produce the Public Good?

2019 ◽  
Author(s):  
Maxime Agbo ◽  
Agnès Zabsonré

2016 ◽  
Author(s):  
Andrej Angelovski ◽  
Daniela Di Cagno ◽  
Werner GGth ◽  
Francesca Marazzi ◽  
Luca Panaccione


2021 ◽  
pp. 002234332098421
Author(s):  
Sam Whitt

This study considers how ethnic trust and minority status can impact the ability of ethnic groups to pursue cooperative public goods, focusing on groups with a history of conflict and lingering hostility. A public good experiment between ethnic Albanians and Serbs in postwar Kosovo reveals that subjects contribute far more to a mutually beneficial public good when they are part of an experimentally induced coethnic majority. However, when in the minority, subjects not only underinvest, but many actively divest entirely, privatizing the public good. Majority/minority status also has wide-ranging implications for how individuals relate to real-world public goods and the institutions of government that provide them. Compared to majority Albanians, survey data indicate how minority Serbs in Kosovo express greater safety and security concerns, feel more politically, socially, and economically excluded, are more dissatisfied with civil liberties and human rights protections, and are less likely to participate politically or pay taxes to support public goods. Conflict-related victimization and distrust of out-groups are strong predictors of these minority group attitudes and behaviors. This suggests a mechanism for how conflict amplifies out-group distrust, increasing parochial bias in public good commitments, especially among minorities who are wary of exploitation at the hands of an out-group majority. To restore trust, this study finds that institutional trust and intergroup contact are important to bridging ethnic divides that inhibit public good cooperation.



1998 ◽  
Vol 42 (1) ◽  
pp. 90-94 ◽  
Author(s):  
William D. Gerdes

One strategy for generating Pareto results in a public good model is to create an environment where traders internalize the public good externality. The model presented here accomplishes this by separating the provision and ownership of public goods. Such goods are privately provided but collectively owned. Under this arrangement, Lindahl prices are generated through the voluntary exchange activities of consumers. Persistent attempts to free ride are not consistent with maximizing behavior which leads to internalization.





2017 ◽  
Vol 53 ◽  
pp. 328-339 ◽  
Author(s):  
Dusan Paredes ◽  
Nathaly M. Rivera


2019 ◽  
Vol 47 (1) ◽  
pp. 111-126
Author(s):  
Matondang Elsa Siburian

Purpose The purpose of this paper is to quantify the effects of regional income disparity and social diversity on local public goods delivery in Indonesia. Design/methodology/approach Using Indonesian provincial data over the period 2001–2014 and by way of System GMM, this paper circumvents endogeneity and persistence of key variables over time which may bias the estimated impact of the critical variables. Findings The result provides no significant evidence on the influence of regional income inequality on the provision of local public goods. The result reveals that ethnic diversity is associated with the more extensive provision of local public goods. A large difference in preferences toward public goods provision in a fragmented society such as Indonesia forces the local government to deliver a greater mixed of public goods to accommodate various preferences for public goods and ensure that each group has equal access to public goods. Political fragmentation within an ethnically heterogeneous society also encourages local politicians to provide a larger provision of public goods to form an inter-ethnic coalition to gain local political access. Practical implications The significant effect of ethnic diversity on public goods provision implies a set of policy recommendation for Indonesian Government in order to maintain peace within the country. The central government should establish a clear-cut standard of local public goods provision for local governments to ensure that that anyone has equal access to public goods regardless of ethnicity. This will mitigate the possibility of ethnic conflict in an ethnically plural society. Originality/value This paper extends its analysis using both fractionalization and polarization indexes to measure the social diversity in Indonesia to obtain a comprehensive knowledge regarding the influence of ethnic diversity on the public good provision. This paper proposes a set of policy recommendation for Indonesian Government to manage the effect of social diversity on the provision of local public goods. To the author’s knowledge, this has never been done before for Indonesia. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2018-0661



2011 ◽  
Vol 7 (6) ◽  
pp. 899-901 ◽  
Author(s):  
Jennifer Jacquet ◽  
Christoph Hauert ◽  
Arne Traulsen ◽  
Manfred Milinski

Can the threat of being shamed or the prospect of being honoured lead to greater cooperation? We test this hypothesis with anonymous six-player public goods experiments, an experimental paradigm used to investigate problems related to overusing common resources. We instructed the players that the two individuals who were least generous after 10 rounds would be exposed to the group. As the natural antithesis, we also test the effects of honour by revealing the identities of the two players who were most generous. The non-monetary, reputational effects induced by shame and honour each led to approximately 50 per cent higher donations to the public good when compared with the control, demonstrating that both shame and honour can drive cooperation and can help alleviate the tragedy of the commons.



2018 ◽  
Vol 72 (3) ◽  
pp. 669-685 ◽  
Author(s):  
Trey Billing

Although countries throughout the developing world continue to increase their number of subnational administrative units, the consequences of administrative unit creation remain poorly understood. This paper argues that newly created administrative units face relative difficulty generating resources and staffing a full and competent bureaucracy, and as a result, are less capable of providing public goods to their constituencies. These challenges to administrative capacity are less consequential within mother units that were carved apart to create new splinter units and are entirely absent in nonsplitting units. Proxying the local provision of public goods with a measure of nighttime light intensity in Burkina Faso, the findings indicate that the public goods provision in newly created splinter provinces dropped significantly relative to prefragmentation levels, while other administrative units remained largely unaffected.



2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Kasper Otten ◽  
Vincent Buskens ◽  
Wojtek Przepiorka ◽  
Naomi Ellemers

Abstract Norms can promote human cooperation to provide public goods. Yet, the potential of norms to promote cooperation may be limited to homogeneous groups in which all members benefit equally from the public good. Individual heterogeneity in the benefits of public good provision is commonly conjectured to bring about normative disagreements that harm cooperation. However, the role of these normative disagreements remains unclear because they are rarely directly measured or manipulated. In a laboratory experiment, we first measure participants’ views on the appropriate way to contribute to a public good with heterogeneous returns. We then use this information to sort people into groups that either agree or disagree on these views, thereby manipulating group-level disagreement on normative views. Participants subsequently make several incentivized contribution decisions in a public goods game with peer punishment. We find that although there are considerable disagreements about individual contribution levels in heterogeneous groups, these disagreements do not impede cooperation. While cooperation is maintained because low contributors are punished, participants do not use punishment to impose their normative views on others. The contribution levels at which groups cooperate strongly relate to the average normative views of these groups.



Sign in / Sign up

Export Citation Format

Share Document