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Edgeworth and Lindahl–Foley equilibria of a General Equilibrium Model with Private Provision of Pure Public Goods
Author(s) -
FLORENZANO MONIQUE,
Del MERCATO ELENA L.
Publication year - 2006
Publication title -
journal of public economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.809
H-Index - 32
eISSN - 1467-9779
pISSN - 1097-3923
DOI - 10.1111/j.1467-9779.2006.00285.x
Subject(s) - foley , economics , public good , dimension (graph theory) , product (mathematics) , microeconomics , general equilibrium theory , private good , mathematical economics , space (punctuation) , mathematics , business , computer science , pure mathematics , operating system , geometry , advertising
In this paper, we propose a definition of Edgeworth equilibrium for a private ownership production economy with (possibly infinitely) many private goods and a finite number of pure public goods. We show that Edgeworth equilibria exist whatever be the dimension of the private goods space and can be decentralized, in the finite and infinite dimensional cases, as Lindahl–Foley equilibria. Existence theorems for Lindahl–Foley equilibria are a by‐product of our results.