Dynamic Voluntary Provision of Public Goods: A Generalization

Abstract

AbstractIn this note we examine if the proposition offered by Fershtman and Nitzan (1991) and Wirl (1996) in the context of a dynamic voluntary provision model with a linear production function can be generalized to a more general CES formulation. By comparing the steady‐state stocks of a public good in open‐loop and feedback Nash equilibria with that under the cooperative solution, we demonstrate that their ranking among the steady‐state stocks is indeed preserved under the CES framework.