Private Goods Research Articles

The Nexus of Fiscal Policy and Growth in the Optimal Control Framework

This research investigates the effect of fiscal policy on economic growth, focusing on the intertwined relationship between public goods provision, taxation policies, and their impact on economic dynamics and growth. The study aims to contribute to this research domain by introducing an economic model within the optimal control framework that integrates taxation policies into the social constraint and incorporates public goods into the social utility function, addressing recent limitations in this research area. Through numerical analysis, the study examines the potential effects of taxes and public goods provision on consumption and economic growth, as reflected by the level of capital. Results indicate that increasing government spending on public goods can decrease private goods consumption without significant economic growth benefits. At the same time, high tax rates could potentially hinder economic growth by overly relying on government intervention. The research findings highlight the importance of an optimal approach to fiscal policy, with policy implications including the need to carefully evaluate public funds' allocation, enhance public spending efficiency, and implement optimal tax to foster economic growth.

Living lab as support for co-creation of value: application to agro-biodiversity contracting solutions

ABSTRACT In addition to providing private goods such as food, fibre and biomass, agriculture can deliver a variety of environmental public goods and ecosystem services, such as biodiversity conservation, water filtering, carbon sequestration, and landscape aesthetics for recreation. Often, however, the use of agricultural landscapes prioritises the provision of private goods, resulting in negative environmental impacts. To address this imbalance in the provision of private and public goods, targeted policy instruments (e.g. contracts) are required to ensure that public goods are provided at the level desired by society. This paper, which is written in the context of the Horizon 2020 project “Contracts 2.0 – H2020 RUR-03-2018”, aims to present a Living Lab case study in Tuscany to point out possible future scenarios of contractual solutions that could provide the right incentives for farmers and land managers to produce a specific environmental public good such as agro-biodiversity. This paper aims to evaluate the application of Living Labs in the case study, assessing what challenges might seriously hinder the collaboration process and/or the success of the participatory approach. Thanks to the participatory approach, it was possible to finalise the “dream contract” in the Living Lab case study. Contract Innovation Labs and Policy Innovation Labs members agreed on a new type of contract based on clear and measurable objectives decided together by farmers and public authorities.

Spatio-temporal interplay between ecosystem services and urbanization in the Yangtze River Economic Belt: A new perspective for considering the scarcity effect

The expeditious trajectory of urbanization has profound ramifications on the configuration and functioning of the natural milieu. Given the constrained opulence of natural capital and its indispensable bestowal of ecosystem services in different regions, meticulous contemplation of the relationship between urbanization and the ecosystem service scarcity value (ESSV) while formulating decisions is imperative. This study focuses on the Yangtze River Economic Belt (YREB), where ESSV is quantified by combining the dynamic changes in market supply and demand factors. The influence of supply and demand changes on the ESSV is discussed and analyzed in four scenarios. Subsequently, a multidimensional urbanization comprehensive evaluation index system was established to explore the spatiotemporal interactive response mode between ESSV and urbanization. Our findings manifest a notably augmented ESSV in the YREB from 1990 to 2020, particularly prominent between 2000 and 2010. Moreover, the growth in public goods services outpaced that in private goods services within the same period. Demand-driven scarcity has emerged as the foremost determinant of ESSV. Urbanization levels gradually increased from 1990 to 2020, with a uniform allocation of heightened ESSV and urbanization throughout the region. The urbanization level of YREB, as a whole, exhibited conspicuous spatial heterogeneity, with the downstream region significantly surpassing the middle and upper reaches, and the downstream Yangtze River Delta city cluster and the middle reaches of the Chengdu-Chongqing city cluster notably outpacing that in the surrounding region. The coupling coordination degree (CCD) between the ESSV and urbanization in the YREB develops in a harmonious direction during the study period, accompanied by palpable spatial disparities. The area of unbalanced development gradually decreased, and the area proportion of the coordinated development type of ESSV and urbanization increased continuously. Overall, this study elucidates regional disparities in the reciprocal relationship between the ESSV and urbanization in the YREB, thereby unveiling the extent of incongruity between regional urbanization and the ecosystem. It serves to identify the juncture at which ecological sustainability and urbanization converge harmoniously, thus offering novel insights in achieving comprehensive, high-caliber, and synchronized development in the YREB.

ESTIMATION OF NITROGEN OXIDE (NOX) EMISSIONS FROM MOTOR VEHICLES BASED ON FUEL CONSUMPTION IN KUALA LUMPUR METROPOLITAN CITY, MALAYSIA

One of the major sources of urban air pollution in Kuala Lumpur is attributed to more than 17 million units of motor vehicles that have an impact on human health. This study focused on nitrogen oxide (NOx) emissions from four classes of motor vehicles such as private cars, motorcycles, and goods vehicle from 2010 to 2014 using fuel consumption analysis. The study revealed that private cars were responsible for the majority of NOx emissions, with 3,854 kg in 2010 increasing to 5,726 kg in 2014. During the same period, motorcycles emitted 1,200 kg in 2010 and 1,750 kg in 2014, while goods vehicles emitted 199 kg in 2010 and 219 kg in 2014.The results of this study are important to policymakers and stakeholders. In particular, for the planning of various strategies to reduce and control the impact of air pollution from motor vehicles, especially on human health, in Kuala Lumpur.

RESOURCE ALLOCATION AND CLIMATE SMART AGRICULTURE IN LAIKIPIA COUNTY, KENYA

Objective: The objective of this study was to determine how resource allocation influences climate-smart agriculture projects in Laikipia County, Kenya. Theoretical Framework: Pareto Efficiency Theory states that at a certain level, it is not possible to utilize more resources to improve one party, without jeopardizing the other party. The study sought to heighten the level of food production to guarantee food security without threatening the environment. Method: A concurrent mixed method approach that adopted the descriptive cross-sectional survey and correlational design was employed to study two World Bank-sponsored Kenya Climate Smart Agriculture projects. Stratified and Simple random sampling were employed to get a sample of 225 small-scale farmers and purposeful sampling identified four key informants. Data was collected using questionnaires and an interview guide and analyzed using descriptive, inferential, and content data analysis techniques. Results and Discussion: The composite mean and standard deviation of the respondents' opinions on resource allocation were 3.52 and 1.143, respectively. The correlation coefficient of resource allocation and the performance of climate-smart agriculture projects was weak, with r=-0.220 and p-value p=0.000<0.05. Therefore, though resource allocation is a crucial factor in food production, judicious and effective resource allocation is critical to realizing the full potential of the projects. Research Implications: Consequently, it is critical to have policies that promote the effective allocation of public and private goods to promote food production coupled with enhanced healthy ecology. Originality/Value: This study contributes to the literature by providing reliable and triangulated empirical data through authentic methodology enhancing suitability for data generalisability and replicability. The relevance and value of this research is evidenced by the need to promote food security in a healthy ecology.

RESOURCE CAPACITY PLANNING AND CLIMATE SMART AGRICULTURE IN LAIKIPIA COUNTY, KENYA

Objective: The purpose of this study was to establish the extent to which capacity planning influences the performance of climate-smart agriculture projects in Laikipia County. Theoretical Framework: The study was anchored on the theory of change whose pillars are planning, participation, and evaluation. These factors are critical in capacity planning of scarce resources and evaluating the effectiveness of the process. Method: A concurrent mixed method approach that adopted the descriptive cross-sectional survey and correlational design was employed to study two World Bank-sponsored Kenya Climate Smart Agriculture projects. Stratified and Simple random sampling were employed to get a sample of 225 small-scale farmers and purposeful sampling identified four key informants. Data was collected using questionnaires and interview guide and analyzed using descriptive, inferential, and content data analysis techniques. Results and Discussion: The respondent’s opinion on capacity planning had a composite mean and standard deviation of 2.88 and 1.219 respectively. Capacity planning and the performance of climate-smart agriculture projects had a strong correlation coefficient of r=0.644 and p-value p=0.000<0.05. Therefore, resource capacity planning is fundamental in enhancing climate-smart projects, through proactive decisions, risk management, and cost reduction. Research Implications: Consequently, it is imperative to have policies that prioritize and promote capacity planning of the scarce public and private goods to enhance their allocation. Originality/Value: This study contributes to the literature by providing reliable and triangulated empirical data through authentic methodology enhancing suitability for data generalisability and replicability. The relevance and value of this research was evidenced by the need to promote food security in pursuance of the achievement of sustainable development goals.

Willingness to pay for private and public traffic safety improvements: the importance of the underlying good

ABSTRACT Findings in the traffic safety literature suggest that people value traffic risk reductions less when framed as a public good (e.g. infrastructure improvements) compared to when framed as a private good (e.g. personal safety equipment). This study contributes to this literature by reporting empirical evidence for the importance of controlling for the attributes of the goods used in such valuations. We focus on risks faced by vulnerable road users such as cyclists and pedestrians and compare valuations across private and public goods that vary in their attributes. When the goods are of an identical nature, we find no significant difference in valuations, resolving the controversy in previous findings. We find significant effects on valuations from using private or public provision, from offering the good as voluntary or mandated in use, and from changing the framing of the good between the private and the public versions. This adds further weight to the importance of controlling for many attributes.

The egalitarian value of counterfeit goods: Purchasing counterfeit luxury goods to address income inequality

AbstractThe present research demonstrates a novel driver of the growing demand for counterfeit luxury goods: perceptions of income inequality. Across five studies, using different samples and counterfeit luxury goods, we find that as perceptions of income inequality increase, consumers value counterfeit luxury products for their “egalitarian value”—a value associated with counterfeits' perceived ability to restore equality in society. Consumers perceive both public and private counterfeit luxury goods to have egalitarian value, suggesting that their value manifests itself beyond consumers' attempts to signal status via consumption. Moreover, the egalitarian value increases consumers' motivation to purchase counterfeit luxury goods beyond their hedonic, utilitarian, economic, or status signaling value. Finally, the positive effect of the egalitarian value of counterfeit luxury goods on purchase preference is greater among consumers who think equality is more desirable and attainable (i.e., those low in social dominance orientation). Our results outline one psychological mechanism underlying consumers' interests in counterfeit luxury goods, explaining how egalitarian value may link two important societal issues: growing income inequality and increased demand for counterfeits.

The contradicting state of urban housing and neoliberal policy in India: a macro analysis

The paper evaluates the adaptation of neoliberal policies in the Indian urban housing policy sector. While completing the objectives of this paper, the article also appraises the expression of neoliberalism as it unfolds in the literature. Neoliberalism is considered a loose set of philosophical, institutional, and political principles to safeguard individual and collective freedom like private property rights, goods and services exchange, movement of capital and labor, etc. Neoliberal policies promote open markets and trade to unbound creative potentials and entrepreneurial skills through efficient utilization of resources and upbringing of human well-being. In a neoliberal regime, cities compete to attract talented people, capital, and resources to achieve newer economic and social benchmarks. However, the constant pursuit of excessive achievements lets some negativities grow within. Large-scale inequality, deprivation, social unrest, and meager quality of life affect the sustainable and holistic development of seemingly most developed cities worldwide. Referring to literature from social sciences, urban planning, and development studies, this paper focuses on the consequences of neoliberalism and its impact on urban housing in India.

An Adapted Indicator Framework for Evaluating the Potential Contribution of Bioeconomy Approaches to Agricultural Systems Resilience

AbstractThis study reviews a variety of “bioeconomy approaches” (BAs) to assess their potential contribution to resilience in agricultural systems, focusing on benefits that can improve multi‐functionality regarding private and public goods. It is based on Meuwissen et al.'s framework to assess the resilience of farming systems. Drawing on literature and expert knowledge, this indicator framework is adapted to develop a new framework which is then applied to seven contrasting BAs (miscanthus, perennial flowering wild plant mixtures, permanent grassland, nutrient recycling, agrivoltaics, urban agriculture, and microalgae). The major outcomes are: 1) the extended indicator framework can help evaluate BAs for their potential to foster resilience in future agricultural systems, 2) all BAs are characterized by their ability to provide multiple private and public goods simultaneously, 3) the strongest contribution of BAs to public goods is their function in maintaining the good condition of natural resources and resource‐use efficiency, 4) all BAs can enhance resilience in agricultural systems by contributing diversity, multifunctionality, environmental sustainability, and autonomy, 5) the mitigation of potential drawbacks of BAs implementation requires ex‐ante assessment, favorable BAs combinations, and stakeholder involvement, 6) context‐specific analysis of each BAs is required to assess their qualitative and quantitative contribution to resilience.

Evaluation of water use impacts caused by real estate development with gentrification traits in the metropolitan area of San Luis Potosí

Water resource management is a technical, social, and political issue worldwide. Water, being a public good, is characterized as follows: “Unlike private goods, public goods are indivisible and cannot be satisfactorily met by the market or other private initiatives. The provision of public goods requires cooperation or coercion, either through collective action or effective government.” In this sense, water is a human right, as stated by the UN in its sixth sustainable development goal, which aims to “ensure availability and sustainable management of water and sanitation for all.” Gradually, housing in the city of San Luis Potosí has shifted from being affordable for the entire population to becoming increasingly unattainable. Due to the growing demand for housing driven by common population growth and urban development, in recent years, vertical construction-both residential and commercial-has been implemented as a potential solution to this phenomenon, now accounting for 10% of constructions in this area in the capital city, according to the Registro Único de la Vivienda as of 2023. However, such constructions have brought new challenges to urbanization in San Luis Potosí city. As noted by Lozano Niño Y., areas, where high-socioeconomic-status apartment buildings with gentrification features proliferate, were not planned to support high population densities. Eventually, one of the possible consequences of high densification in these areas will be the inadequacy of basic services such as water. While vertical housing offers an alternative to maximize land use within the urban sprawl and could address housing demands, there is also a need to improve public services and urban infrastructure in the surrounding areas where these constructions are planned to prevent social inequality in terms of public service distribution. This study aims to analyze the relationship between case studies—buildings with gentrification features-and their impact on the use and distribution of potable water among the inhabitants of the urban sprawl of San Luis Potosí, by using geospatial methods and technologies.

한국 해기사의 정체성에 관한 연구 : 공공재인가? 사적재인가?

한국 해기사의 정체성에 관한 연구 : 공공재인가? 사적재인가?

Will the European Green Deal enhance Europe’s security towards Russia? A political economy perspective

The European Green Deal is a set of policy initiatives set by the European Commission with the aim of making the European Union climate neutral in 2050. The Deal is credited with many virtues by its proponents, and in particular that it would reduce geopolitical disputes with Europe’s main supplier of energy, Russia. The nascent literature on energy transition is primarily focused on its economic costs and benefits, and on its contribution to energy security; but it has so far left unaddressed the question of the transition’s military consequences. To address that question, our paper adopts a political economy perspective by looking at how a sizeable drop in the energy revenue, which would result from the successful implementation of the Deal, is likely to affect the intraelite competition underway in Russia. We model that competition by means of a Tullock contest in which the energy revenue may be allocated by the sole winner to the provision of private goods or of club goods. We show that the Deal would favour the currently ruling elite group’s efforts at winning the contest. Given that this elite would thus control energy revenue and would spend it on military investments intended at maintaining it in power, the Deal could have adverse security consequences for Europe. The paper concludes by underlining the importance for the Deal’s success to factor in its unintended geopolitical consequences.

A micro‐founded comparison of fiscal policies between indirect and direct job creation

AbstractThe purpose of this paper is to provide a micro‐economic foundation for an argument that the direct employment by the government is more desirable than the government purchase of private goods to eliminate unemployment. A general equilibrium model with monopolistic competition is devised, and the effects of policies (government purchase, tax rate operation, and government employment) on macroeconomic variables (consumption, price, and profit) are investigated. It is shown that (1) the government purchase is inflationary in the sense that additional effective demand by the government not only increases private employment but also raises prices; (2) the government employment can achieve full employment without causing a rise in prices.

Integrating three theories of 21st-century capitalism

Purpose This study aims to help develop “business principles for stakeholder capitalism” in two steps. First, the study defines internal logic of three theories of capitalism and two variants within each theory. Second, it examines approaches to integration into modern democratic capitalism. Treating the three theories as substitutes identifies relative strengths and weaknesses; complementarity and partial overlap approaches to integration study the institutional settings within which stakeholder capitalism operates. Empirical outcomes reflect competition between market and stakeholder businesses for participants, with institutional conditions determining the scope of collective action. Design/methodology/approach The approach aligns three typologies in a unique conceptual arrangement defining the three theories of capitalism: forms of capitalism, potential failures of each form and associated types of goods. The first method examines the internal logic of each theory of capitalism. The second draws on traditional narrative review of references documenting each theory of capitalism and variants together with modern Marxist anti-capitalism. Findings Three typologies align uniquely with the theories of capitalism, each having two variants. Both variants of stakeholder capitalism are compatible with compassionate capitalism, constitutional government or polycentric governance but not with self-interest capitalism, dictatorship or Marxism. A theory of modern democratic capitalism allocates roles for private, club and social goods with empirically variable mixes occurring across countries. Competition among different types of enterprises provides an empirical test for comparative advantages of stakeholder capitalism. Future research should consider approaches for testing the proposed conceptual scheme in practice concerning capacity to deal with grand challenges, wicked problems and black swan events. Research limitations/implications Research approach is limited to logical examination of theories and literature documentation without direct empirical confirmation. The study does not address practical implications for managers and public officials or social implications concerning private incentives, stakeholder cooperation or collective action. Originality/value Originality lies in shifting terms of debate about stakeholder capitalism from advocacy of substitute theories to understanding of its relationship to market capitalism and collective action capitalism. Value lies in explaining desirability of theoretical integration of three types of capitalism into a comprehensive framework for modern democratic capitalism.

Public goods and diversity in democracies and non‐democracies

AbstractThis paper analyzes how ethnic diversity affects the provision of public goods in democratic and non‐democratic societies when political parties compete for voter support by offering a mix of private and public goods. Our model implies that increasing diversity that leads to more heterogeneous preferences for public goods decreases the provision of public goods in democracies, where political power is distributed equally among citizens, while there is a weaker or no effect in non‐democracies, where political power is distributed unequally among citizens. When measuring diversity by ethnic fractionalization and public good provision by either levels of government expenses, expenditures on health, or life expectancy, we indeed observe a negative association between diversity and the provision of public goods in democracies but no or only a weak association in non‐democracies.

Research on governance structure and benefit balance concerning urban regeneration in Beijing, China: Analysis of the best practical cases

While proposing the national strategy of implementing urban regeneration, the Chinese government put forward requirements such as preventing large-scale demolition and construction and protecting historical architecture, indicating that the previous urban regeneration methods of demolishing low-rise and old buildings and building high-rise and new ones are no longer applicable. As the capital city, Beijing is facing more stringent constraints on reduction-oriented development and historical protection, and the problems of insufficient motivation and unclear paths for market players to participate in urban regeneration have become more prominent. Based on a systematic review of the main theories and practices of market participation in urban regeneration, this study builds a market-oriented mechanism analysis framework for urban regeneration of “governance structure-benefit balance.” In this study, we compared 34 cases that won the title of “The First Beijing Urban Regeneration Best Practice in 2022” and conducted further in-depth analysis of three typical cases by semi-structured interviews, field research, qualitative analysis, and quantitative comparison. From the study, we identified three typical governance structures of welfare protection, economic growth, and comprehensive development during the emergence of market participation in Beijing’s urban regeneration process and found that different governance structures have different cooperation and interaction mechanisms, value promotion orientations, and benefits distribution, which are respectively applicable to facilities and public space regeneration projects that implement social public welfare responsibilities, industrial regeneration projects with ample economic value-added space, and regional comprehensive regeneration projects where quasi-public goods and private goods coexist. We believe that the coexistence of multiple governance structures is an inevitable choice for China’s market mechanism of urban regeneration. The value-added space of urban regeneration projects should be further improved, the distribution of interests among multiple subjects should be balanced, and the sustainable and normalization of urban regeneration actions should be promoted.

Governance in times of war: Public procurement in Ukraine.

Wars increase the importance of government functions, yet they also constrain their ability to fulfill these functions. In particular, wars hinder economic activity, thereby limiting governments' capacity to raise the revenues required to maintain stability and meet the heightened needs of citizens. Effective governance is therefore severely undermined in times of war. However, empirical research on how wars affect government procurement is limited. We address this gap by exploring procurement dynamics using over one million public purchases of goods and services in Ukraine between January 2021 and October 2022, corresponding to the Russian invasion of the country. We document a large fall in the total number of purchases since the invasion and an increase in the share of successfully completed procurements. This higher success rate comes at the cost of efficiency, with the government paying more to source their goods. This can be attributed to the decline in the share of government purchases via online auctions and the reduced competition. Thus, the prioritization of the quick acquisition of goods and services forced governments to sacrifice cost-effectiveness. In summary, the war did not lower the successful purchasing of private goods and services, and transparency was not decreased. However, the trade-off of speed and transparency for greater costs may become increasingly problematic with the growing budget constraints resulting from the war. This article contributes to our understanding of the Ukrainian government choices during the early phase of the war. The results also highlight the importance of ensuring procurement efficiency and transparency when the war ends as reconstruction efforts will require substantial increases in government procurements.

The Set of Equilibria in Max-Min Two Groups Contests with Binary Actions and a Private Good Prize

The Set of Equilibria in Max-Min Two Groups Contests with Binary Actions and a Private Good Prize

Characterization of the Set of Equilibria in Max-Min Group Contests Continuous Efforts and a Private Good Prize

Characterization of the Set of Equilibria in Max-Min Group Contests Continuous Efforts and a Private Good Prize