The Political Economy Of Publicly Provided Goods
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Author | : Katrina Lauren Kosec |
Publisher | : Stanford University |
Total Pages | : 202 |
Release | : 2011 |
Genre | : |
ISBN | : |
This dissertation consists of three chapters which explore various aspects of the political economy of publicly-provided goods. I shed light on why governments do or do not invest in goods of different types, and also how government versus private provision affects consumers. What follows are three empirical analyses testing the implications of competing theoretical models. My first chapter addresses the question, what drives governments with similar revenues to publicly provide very different amounts of goods for which private substitutes are available? Key examples are education and health care. I compare spending by Brazilian municipalities on pre-primary education--a good that is also provided privately--with spending on public infrastructure like parks and roads, which lacks private substitutes. I find that municipalities with higher median income and more inequality are less likely to allocate revenue to education or to expand pre-primary enrollment. They are more likely to allocate revenue to public infrastructure. This seems to occur for two reasons. In rich and unequal municipalities, fewer total people support public education spending (the collective choice channel), and also, any given poor person wanting public education has less influence over policymakers there (the political power channel). My second chapter addresses the question, can private sector participation (PSP) in the urban piped water sector improve child health? A fixed effects analysis suggests that the introduction of PSP decreases diarrhea among under-five children by between 2.2 and 2.6 percentage points, or 14-16%. An instrumental variables analysis that uses variation in the share of the world water market controlled by former colonizing countries suggests that the effects are twice as large. The difference between the OLS and the IV results can be explained by the fact that PSP is more likely when the water sector is distressed and causing health problems. Importantly, PSP appears to benefit the health of children from the poorest households the most. It also leads to higher rates of reliance on piped water as the primary water source, which is a likely channel explaining child health improvements. My third chapter, joint with John Hatfield, examines how competition between governments affects economic growth. We find that doubling the number of local governments in a metropolitan area increases the income growth rate over 1969-2006 by 18%, which implies an approximate $3900 difference in 2006 income. Decomposing this effect, we find that 60% stems from inter-jurisdictional competition changing the composition of the workforce, while 40% comes from making existing workers more productive. The results support a formal model showing that competition for capital drives local governments to provide productive public goods at levels which maximize economic growth (Hatfield 2010).
Author | : Katrina Lauren Kosec |
Publisher | : |
Total Pages | : |
Release | : 2011 |
Genre | : |
ISBN | : |
This dissertation consists of three chapters which explore various aspects of the political economy of publicly-provided goods. I shed light on why governments do or do not invest in goods of different types, and also how government versus private provision affects consumers. What follows are three empirical analyses testing the implications of competing theoretical models. My first chapter addresses the question, what drives governments with similar revenues to publicly provide very different amounts of goods for which private substitutes are available? Key examples are education and health care. I compare spending by Brazilian municipalities on pre-primary education--a good that is also provided privately--with spending on public infrastructure like parks and roads, which lacks private substitutes. I find that municipalities with higher median income and more inequality are less likely to allocate revenue to education or to expand pre-primary enrollment. They are more likely to allocate revenue to public infrastructure. This seems to occur for two reasons. In rich and unequal municipalities, fewer total people support public education spending (the collective choice channel), and also, any given poor person wanting public education has less influence over policymakers there (the political power channel). My second chapter addresses the question, can private sector participation (PSP) in the urban piped water sector improve child health? A fixed effects analysis suggests that the introduction of PSP decreases diarrhea among under-five children by between 2.2 and 2.6 percentage points, or 14-16%. An instrumental variables analysis that uses variation in the share of the world water market controlled by former colonizing countries suggests that the effects are twice as large. The difference between the OLS and the IV results can be explained by the fact that PSP is more likely when the water sector is distressed and causing health problems. Importantly, PSP appears to benefit the health of children from the poorest households the most. It also leads to higher rates of reliance on piped water as the primary water source, which is a likely channel explaining child health improvements. My third chapter, joint with John Hatfield, examines how competition between governments affects economic growth. We find that doubling the number of local governments in a metropolitan area increases the income growth rate over 1969-2006 by 18%, which implies an approximate $3900 difference in 2006 income. Decomposing this effect, we find that 60% stems from inter-jurisdictional competition changing the composition of the workforce, while 40% comes from making existing workers more productive. The results support a formal model showing that competition for capital drives local governments to provide productive public goods at levels which maximize economic growth (Hatfield 2010).
Author | : Jana Friedrichsen |
Publisher | : |
Total Pages | : |
Release | : 2019 |
Genre | : |
ISBN | : |
We analyze the political economy of the public provision of private goods when individuals care about their social status. Status concerns motivate richer individuals to vote for the public provision of goods they themselves buy in markets: a higher provision level attracts more individuals to the public sector, enhancing the social exclusivity of market purchases. Majority voting may lead to a public provision that only a minority of citizens use. Users in the public sector may enjoy better provision than users in the private system. We characterize the coalitions that can prevail in a political equilibrium.
Author | : |
Publisher | : |
Total Pages | : |
Release | : 2005 |
Genre | : Economics |
ISBN | : |
Author | : Sören Blomquist |
Publisher | : |
Total Pages | : 27 |
Release | : 1998 |
Genre | : |
ISBN | : |
Author | : Tobias König |
Publisher | : |
Total Pages | : |
Release | : 2016 |
Genre | : |
ISBN | : |
Author | : Sophia Delipalla |
Publisher | : |
Total Pages | : 38 |
Release | : 1999 |
Genre | : |
ISBN | : |
Author | : Kurtis J. Swope |
Publisher | : |
Total Pages | : 530 |
Release | : 2000 |
Genre | : |
ISBN | : |
Author | : Jacob S. Hacker |
Publisher | : Cambridge University Press |
Total Pages | : 487 |
Release | : 2021-11-11 |
Genre | : History |
ISBN | : 1316516369 |
Drawing together leading scholars, the book provides a revealing new map of the US political economy in cross-national perspective.
Author | : Thomas Laudal |
Publisher | : Routledge |
Total Pages | : 86 |
Release | : 2019-08-28 |
Genre | : Business & Economics |
ISBN | : 1000705722 |
Public goods are typically defined only in reference to the good itself but, as this book argues, the public goods can be better understood if contextual variables are incorporated. This book discusses the production and provision of public goods. It asserts that changes related to public goods are better understood if the category of goods are not decided solely by the properties of the good itself. We also need to focus on how the enabled utility of a good is influenced by the production and the provision of the good. The book opens with a brief introduction to common conceptions of public goods and a review of the existing literature - highlighting the limitations of current definitions of public goods. It presents a new multi-layered approach to public goods. This has implications for the discourse on public goods and for our understanding of the societal and environmental impact of public goods. The implications are illustrated in several areas; public goods in ancient history, privatization, innovation, competitiveness and prices, democracy and political standards, and economic growth. The book provides a provocative argument for a new way to analyze public goods which will appeal to scholars and students interested in the economic analysis of public goods, arguments regarding the privatizing or nationalizing of production and services, and method of modelling and measuring sustainable business activities.