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A Model of Inequality Aversion and Private Provision of Public Goods
The B.E. Journal of Theoretical Economics ( IF 0.3 ) Pub Date : 2020-03-11 , DOI: 10.1515/bejte-2019-0066
Hide-Fumi Yokoo 1
Affiliation  

I develop a model of inequality aversion and public goods that allows the marginal rate of substitution to be variable. As a theoretical foundation, utility function of the standard public goods model is nested in the Fehr-Schmidt model. An individual’s contribution function for a public good is derived by solving the problem of kinky preference and examining both interior and corner solutions. Results show that the derived contribution function is not monotonic with respect to the other individual’s provision. Thus, the model can be used to explain empirical evidence for the effect of social comparison on public-good provision.

中文翻译:

不平等厌恶和公共物品私人提供的模型

我建立了不平等厌恶和公共物品模型,该模型允许边际替代率可变。作为理论基础,标准公共物品模型的效用函数嵌套在Fehr-Schmidt模型中。个人对公共物品的贡献函数是通过解决顽固偏好问题并研究内部和角落解决方案而得出的。结果表明,推导的贡献函数相对于其他人的提供而言不是单调的。因此,该模型可用于解释社会比较对公共物品提供的影响的经验证据。
更新日期:2020-03-11
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