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.
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