Optimal ownership of public goods reconsidered

C-Tier
Journal: Economics Letters
Year: 2014
Volume: 125
Issue: 1
Pages: 21-24

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Consider a non-governmental organization (NGO) that can invest in a public good. Should the government or the NGO own the public project? In an incomplete contracting framework with split-the-difference bargaining, Besley and Ghatak (2001) argue that the party who values the public good most should be the owner. We demonstrate the robustness of their insight when the split-the-difference rule is replaced by the deal-me-out solution. Our finding is in contrast to the private good results of Chiu (1998) and De Meza and Lockwood (1998), who show that the optimal ownership structure crucially depends on whether the split-the-difference rule or the deal-me-out solution is used.

Technical Details

RePEc Handle
repec:eee:ecolet:v:125:y:2014:i:1:p:21-24
Journal Field
General
Author Count
1
Added to Database
2026-01-29