Flores, Nicholas E. and Graves, Philip E. (2008): Optimal public goods provision: implications of endogenizing the labor/leisure choice. Published in: Land Economics , Vol. 84, No. 4 : pp. 701-707.
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Conventional analysis of public goods provision aggregates individual willinness to pay while treating income as exogenous, ignoring the fact that we generate income to allow us to purchase utility-generating goods. We explore the implications of endogenizing the laborl/leisure decision by explicitly considering leisure demand in a model of public goods provision. We consider benefit analysis of public goods provision and find that increments of the public good will generally be under-valued using conventional analysis while decrements to the public good (rare in public good settings) will be overvalued.
|Item Type:||MPRA Paper|
|Original Title:||Optimal public goods provision: implications of endogenizing the labor/leisure choice|
|Keywords:||environmental economics; willingness-to-pay; willingness-to-accept; valuation; public goods; public goods provision; benefit-cost analysis|
|Subjects:||D - Microeconomics > D0 - General
H - Public Economics > H4 - Publicly Provided Goods
D - Microeconomics > D7 - Analysis of Collective Decision-Making
A - General Economics and Teaching > A1 - General Economics
N - Economic History > N5 - Agriculture, Natural Resources, Environment, and Extractive Industries
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q0 - General
D - Microeconomics > D6 - Welfare Economics > D61 - Allocative Efficiency; Cost-Benefit Analysis
|Depositing User:||Philip E. Graves|
|Date Deposited:||11. Jan 2010 07:44|
|Last Modified:||15. Feb 2013 20:13|
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