VOLUNTARY PUBLIC GOODS

A voluntary public good is a non-rivalrously-consumed commodity which, nonetheless, individuals can only consume if they make some enabling expenditure. E.g., with visual broadcasting a television is required and, in much of Europe, a licence. First, we characterise the population of voluntary consumers at arbitrary levels of the licence fee. Next, we consider the optimal licence fee chosen by a utilitarian government which recognises it does not have a captive population of public good consumers. We compare this outcome with that arising when the public good is financed from general taxation via a uniform poll tax and thus everyone consumes it.


Issue Date:
Nov 11 1989
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/268369
Language:
English
Total Pages:
34
JEL Codes:
022; 024




 Record created 2018-02-15, last modified 2020-10-28

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