Journal ArticleDOI
Benefit‐cost analysis and demand curves for public goods*
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TLDR
In this article, it is conjectured that, under certain assumptions, all of the conditions of efficiency, with and without public goods and externalities, can be derived using aggregate bid curves.Abstract:
SUMMARY
This paper starts by examining why demand curves are not as useful in the analysis of public as of private goods. It is argued that the ‘quantity’ of most public goods amounts to what is usually called a ‘quality’ measure. Because of this, and for other reasons developed in the paper, it is fruitful in the analysis of public goods to deal directly with the total amount individuals would pay for changes in public good provision, rather than with the average amount per unit change. A demand curve-like construction, dubbed an ‘aggregate bid curve’, is shown to be a useful tool. The aggregate bid is the precise meaning of ‘benefit’ in benefit cost analysis. It is conjectured that, under certain assumptions, all of the conditions of efficiency, with and without public goods and externalities, can be derived using aggregate bid curves.read more
Citations
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Referendum contingent valuation, anchoring, and willingness to pay for public goods
TL;DR: This article found that psychometric anchoring effects, rather than incentive effects, are the likely cause of results commonly found in contingent valuation studies, and that the currently popular single referendum elicitation format is highly vulnerable to anchoring.
Posted Content
Valuing Public Goods: A Comparison of Survey and Hedonic Approaches
TL;DR: The survey approach has been widely used to value environmental commodities where market data for hedonic analysis is difficult to acquire (see, for example, Brookshire, Ives, and Schulze; Rowe et al. as discussed by the authors ).
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Bidding games for valuation of aesthetic environmental improvements
TL;DR: In this article, an empirical case study of the benefits of abatement of aesthetic environmental damage associated with the Four Corners power plant and Navajo mine using the bidding game technique is presented.
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Valuing option, existence, and bequest demands for wilderness.
TL;DR: The authors developed a simple model of bequest value to assess the relative importance of current costs and future benefits of nuclear waste storage, and extended the basic model of non-parternalistic altruism to account for the uncertain nature of the externality.
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An experiment on the economic value of visibility
TL;DR: In this article, an iterative bidding technique was used to elicit honest bids for environmental goods not priced in formal markets, and the authors explored the linkages between the physical parameters of visibility and representation of the good called visibility to individuals for valuation purposes.
References
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Book
The demand and supply of public goods
TL;DR: The DEMAND and SUPPLY OF PUBLIC GOODS as mentioned in this paper is an important part of Buchanan's contractarian theory of the 'productive state' and is written for students, but is in no way a textbook of dry pedagogy.
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The rising cost of local public services: some evidence and reflections
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Некоторые заметки по поводу предложенной Линдалем теории определения государственных расходов (Some Notes on the Lindahl Teory of Determination of Public Expenditers)
TL;DR: In this article, the authors describe the history of the First World War and its impact on the development of the Internet and its application in the field of information technology, including the following: