Existence and regularity of equilibria in a general equilibrium model with private provision of a public good

We prove existence and generic regularity of equilibria in a general equilibrium model of a completely decentralized pure public good economy. Competitive firms using private goods as inputs produce the public good, which is privately provided by households. Previous studies on private provision of...

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Bibliographic Details
Published in:Journal of mathematical economics 2005-08, Vol.41 (4), p.617-636
Main Authors: Villanacci, Antonio, Zenginobuz, E.Ünal
Format: Article
Language:English
Subjects:
Competition
Economic theory
Enterprises
Equilibrium
Existence
General economic equilibrium
General equilibrium model
Generic regularity
Households
Mathematical methods
Mathematical models
Modelling
Private provision of public good
Production
Public good
Public goods
Studies
Technology
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Summary:We prove existence and generic regularity of equilibria in a general equilibrium model of a completely decentralized pure public good economy. Competitive firms using private goods as inputs produce the public good, which is privately provided by households. Previous studies on private provision of public goods typically use one private good, one public good models in which the public good is produced through a constant returns to scale technology. As two distinguishing features of our model, we allow for the presence of several private goods and nonlinear production technology. In that framework, we use an homotopy argument to prove existence of equilibria and we show that economies are generically regular.
ISSN:0304-4068
1873-1538
DOI:10.1016/j.jmateco.2004.12.005