Abstract
The application of distributive equity has been confined to the allocation of private goods. This paper extends this application to economies with public goods. After the surplus accruing from publicness in consumption of public goods is defined and quantified, we show: (1) There exists an efficient allocation such that the surplus from publicness as well as all of the resources available are equitably distributed. (2) The surplus from publicness fails to be equitably distributed in Lindahl equilibria and in the core, even if the economy starts from an equal distribution of endowments. (3) A certain income redistribution policy should be undertaken to equitably distribute the surplus from publicness.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
