AN IMPLEMENTABLE STATE-OWNERSHIP SYSTEM WITH GENERAL VARIABLE RETURNS
Academic Article
Overview
Identity
Additional Document Info
Other
View All
Overview
abstract
In this paper, we formalize an implementable state-ownership institutional framework for public goods economies by using the Generalized Ratio equilibrium that yields Pareto-efficient and individually rational allocations and that allows for general variable returns. We then address the problems created by manipulative behavior on the part of individuals and study the implementability of this social choice rule by giving an incentive compatible and well-behaved mechanism whose Nash allocations coincide with Generalized Ratio allocations. Journal of Economic Literature Classification Numbers: C72, D61, D78, H41. 1994 by Academic Press, Inc.