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Author:Pirttilä, J.
Tuomala, M.
Title:Publicly provided private goods and redistribution: a general equilibrium analysis
Journal:Scandinavian Journal of Economics
2002 : MAR, VOL. 104:1, p. 173-188
Index terms:Taxation
Labour supply
Education
Household goods
Freeterms:Public provision
Language:eng
Abstract:Public provision of private goods is examined within a self-selection framework where production depends on labour supply of different households and the level of public provision. It is shown that productivity and wage-structure effects can create a role for public provision, even if preferences are weakly separable between goods and leisure. Public provision of education may offer an intuitively appealing case for the production-side impacts. The authors also address the reasons for public provision in a dynamic, overlapping generations economy, whereby public provision may affect efficiency and social costs of redistribution of future generations as well.
SCIMA record nr: 234361
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