Econ306 PublicGood Applications

Econ306 PublicGood Applications - • “Optimal Allocation...

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Applications by other scholars/economists. “Efficiency and Equity in the Optimal Supply of a Public Good” by Martin McGuire and Henry Aaron, 1969 o Attempts to determine the optimal supply of a public good and how the burden of cost should be distributed among the consumers. “Using surveys to value public goods: the contingent valuation method” by Robert Mitchell and Richard Carson, 1989 o A technique that attempts to determine the value of a public good by eliciting responses directly from consumers through surveys.
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Unformatted text preview: • “Optimal Allocation of Public Goods: A Solution to the “Free Rider” Problem” by Theodore Groves and John Ledyard, 1977 o Formulates a specific allocation-taxation scheme where government rules make consumers find it in their best interest to state their true preferences for the good. This would eliminate the “free riders” who understate their preferences in order to preserve a larger share of their income....
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