Lindahl's Solution and the Core of an Economy with Public Goods

By Duncan K. Foley. 1970

In an economy with an arbitrary number of consumers and an arbitrary number of commodities, some public and some private, I propose a generalization of Lindahl's equilibrium solution, and prove an existence theorem for it. A particular generalization of the "core" of an exchange equilibrium to an economy with public goods is proposed, and it is shown that a Lindahl equilibrium allocation is also a core allocation.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

Citations in the corpus

Proportionally Fair Clustering (2019, background): “Our notion of proportionality is derived from the notion of core in economics (Scarf, 1967; Foley, 1970).”
Markets for public decision-making (2018, background): “We note that Lemma A.1 further establishes that the solution is in the core, as Lindahl Equilibria are in the core Foley (1970).”
Does Voluntary Participation Undermine the Coase Theorem (2000, background): “The core — for example Foley (1970), Mas-Colell (1980), and Cornes and Sandler (1986, pp. 303–306, 417–419) — is an explicitly cooperative concept of this kind.”
Rationality in Economics (2001, methodology): “For details, see Hammond (1988a). However, a decision tree which has both chance and natural nodes is almost like a three-person game in extensive form.”
Fair Allocation of Indivisible Public Goods (2018, background): “However, optimizing this objective is known to be NP-hard [Fluschnik et al., 2017].”