On the Set of Pareto Efficient Allocations in Economies with Public Goods.

B-Tier
Journal: Economic Theory
Year: 1996
Volume: 7
Issue: 2
Pages: 371-79

Authors (2)

Diamantaras, Dimitrios (not in RePEc) Wilkie, Simon (University of Southern Califor...)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We examine the set of Pareto-efficient allocations in economies with public goods. We show that even if preferences are continuous and strongly monotonic, it need not coincide with the set of weakly efficient allocations. We then study topological properties of the Pareto set. We show that it is neither connected nor closed in allocation space. Furthermore, if the public goods are local, the image of the Pareto set in utility space need not be closed or connected. We provide two independent sufficient conditions for the closedness of the Pareto set. The results are directly applicable to private goods economies with joint production. Our results should be of interest for general equilibrium and mechanism design theory; where for example, the properties of the efficient set are important for proving the existence of an equilibrium and for the study of the properties of monotone-path social choice correspondences.

Technical Details

RePEc Handle
repec:spr:joecth:v:7:y:1996:i:2:p:371-79
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25