scholarly journals Fiscal decentralisation, local institutions and public good provision: evidence from Indonesia

2017 ◽  
Vol 45 (2) ◽  
pp. 383-409 ◽  
Author(s):  
Sarmistha Pal ◽  
Zaki Wahhaj
Keyword(s):  
Public Good ◽  
Public Good Provision ◽  
Local Institutions ◽  
Fiscal Decentralisation ◽  
Good Provision

scholarly journals Local Institutions and the Dynamics of Community Sorting

2014 ◽  
Vol 6 (3) ◽  
pp. 136-156 ◽  
Author(s):  
Andrea Robbett
Keyword(s):  
Public Good ◽  
Laboratory Experiments ◽  
Self Organization ◽  
Public Good Provision ◽  
Tax Policies ◽  
Local Institutions ◽  
Heterogeneous Preferences ◽  
Efficient Outcome ◽  
Good Provision

This paper studies the dynamics by which populations with heterogeneous preferences for public good provision sort themselves into communities. I conduct laboratory experiments to consider which institutions best facilitate efficient self-organization when residents can move freely between locations. I find that institutions requiring all residents of a community to pay equal taxes enable subjects to sort into stable, homogeneous communities. Though sorted, residents often fail to attain the provision level best suited for them. When residents can vote for local tax policies with ballots, along with their feet, each community converges to the most efficient outcome for its population. (JEL C73, D72, H21, H41, H71, H73)

scholarly journals Social Pressure in Networks Induces Public Good Provision

Games ◽  
2021 ◽  
Vol 12 (1) ◽  
pp. 4
Author(s):  
David Jimenez-Gomez
Keyword(s):  
Public Good ◽  
Small Group ◽  
Dynamic Model ◽  
Network Topology ◽  
Social Pressure ◽  
Public Good Provision ◽  
Public Good Game ◽  
The Public ◽  
Best Response ◽  
Good Provision

I develop a dynamic model with forward looking agents, and show that social pressure is effective in generating provision in a public good game: after a small group of agents start contributing to the public good, other agents decide to contribute as well due to a fear of being punished, and this generates contagion in the network. In contrast to earlier models in the literature, contagion happens fast, as part of the best response of fully rational individuals. The network topology has implications for whether contagion starts and the extent to which it spreads. I find conditions under which an agent decides to be the first to contribute in order to generate contagion in the network, as well as conditions for contribution due to a self-fulfilling fear of social pressure.

scholarly journals The Evolution of Networks and Local Public Good Provision: A Potential Approach

Games ◽  
2021 ◽  
Vol 12 (3) ◽  
pp. 55
Author(s):  
Markus Kinateder ◽  
Luca Paolo Merlino
Keyword(s):  
Public Good ◽  
Nash Equilibria ◽  
Potential Game ◽  
Public Good Provision ◽  
Local Public Good ◽  
Steady State Distribution ◽  
State Distribution ◽  
Long Run ◽  
Split Graphs ◽  
Good Provision

In this paper, we propose a game in which each player decides with whom to establish a costly connection and how much local public good is provided when benefits are shared among neighbors. We show that, when agents are homogeneous, Nash equilibrium networks are nested split graphs. Additionally, we show that the game is a potential game, even when we introduce heterogeneity along several dimensions. Using this result, we introduce stochastic best reply dynamics and show that this admits a unique and stationary steady state distribution expressed in terms of the potential function of the game. Hence, even if the set of Nash equilibria is potentially very large, the long run predictions are sharp.

A Model of Inequality Aversion and Private Provision of Public Goods

2020 ◽  
Vol 20 (2) ◽  
Author(s):  
Hide-Fumi Yokoo
Keyword(s):  
Public Goods ◽  
Public Good ◽  
Theoretical Foundation ◽  
Inequality Aversion ◽  
Public Good Provision ◽  
Marginal Rate ◽  
Private Provision ◽  
Marginal Rate Of Substitution ◽  
Good Provision ◽  
Corner Solutions

AbstractI 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.

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