Monopolistic Competition, Growth and Public Good Provision
研究在垄断竞争市场中,人口增长如何通过增加私人消费品数量,提高收入边际效用和公共品贡献的机会成本,从而减少公共品供给。
In the standard model, provision of a pure public good is increasing in group size if it is a normal good. I develop a model of public good provision in which private goods are supplied in a monopolistically competitive market. In this model, group size corresponds to population. I find that increases in population lead to reduced public good provision. The reason is quite simple: as population increases, the number of private goods available for consumption also increases. This raises the marginal utility of income and increases the opportunity cost of contributing to the public good. Copyright © The Author(s). Journal compilation © Royal Economic Society 2009.