An Approach to the Problem of Estimating Demand for Public Goods

  • Peter Bohm

Abstract

The purpose of this paper is to advance a procedure for estimating the demand for public goods (such as environmental quality) in the probably normal case where the authorities have no idea about the aggregate maximum willingness to pay in relation to costs nor about the willingness to pay in different consumer groups which are possible to distinguish from the taxation point of view. It is argued that the procedure advanced here will avoid creating incentives to misrepresent individual preferences. Moreover, it conforms to the real-world situation where an optimal payment or taxation distribution cannot be decided upon prior to estimation of demand.

Keywords

Public Good Indifference Curve Policy Cost Pure Theory True Valuation 
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References

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    Bohm, P.: Estimating Demand for Public Goods: An Experiment. (To appear.)Google Scholar
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    McGuire, M. & Aaron, H.: Efficiency and equity in the optimal supply of a public good. Review of Economics and Statistics, 1969.Google Scholar
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    Musgrave, R.: The Theory of Public Finance, New York, 1959.Google Scholar
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    Samuelson, P.: The Pure Theory of Public Expenditure. Review of Economics and Statistics, 1954.Google Scholar
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    Samuelson, P.: Pure theory of public expenditure and taxation. In Public Economics (ed. Margolis & Guitton ), London, 1969.Google Scholar

Copyright information

© The Swedish Journal of Economics 1971

Authors and Affiliations

  • Peter Bohm
    • 1
  1. 1.University of StockholmStockholmSweden

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