I am thankful to two anonymous referees and one associate editor of this journal for their very helpful comments. This version is substantially revised in light of their comments. This project started when I was visiting the Department of Economics at the National University of Singapore as a postdoctoral fellow. I am thankful to the department for its hospitality. Any remaining errors are my own responsibility.
Public Good Provision Under Monopolistic Competition
Article first published online: 2 MAY 2013
© 2013 Wiley Periodicals, Inc.
Journal of Public Economic Theory
Volume 15, Issue 3, pages 378–396, June 2013
How to Cite
MONDAL, D. (2013), Public Good Provision Under Monopolistic Competition. Journal of Public Economic Theory, 15: 378–396. doi: 10.1111/jpet.12029
- Issue published online: 2 MAY 2013
- Article first published online: 2 MAY 2013
- Accepted manuscript online: 19 FEB 2013 08:32AM EST
- Manuscript Accepted: 7 JUL 2011
- Manuscript Received: 3 FEB 2010
This paper presents a model of voluntary private provision of public good under monopolistic competition following Pecorino. Consumers prefer product varieties and a public good. Marginal utility of income depends inversely upon the aggregate consumption of private goods in this model. As population size increases, aggregate consumption of private goods goes up and marginal utility of income falls. This explains the positive relationship between population size and public good provision. Any technological changes in the production of private goods are shown to be neutral to the aggregate provision of public good. These results are in contrast to Pecorino.