A constitutional theory of public goods Marmolo, Elisabetta

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Marmolo, Elisabetta
Appears In
Journal of Economic Behavior & Organization
Public goods -- Research; Social choice -- Research; Utility functions -- Research
Constitutional choice determines public from private goods, contrary to the conventional definition of public goods which identifies a class of goods which the market cannot provide. Utility interdependence in consumption is the basis of individuals in choosing what good should be provided publicly at the constitutional level. While a constitutional theory of public goods provides a stronger rationale than the conventional market failure theory, it has some policy implications: there should be a strong definition of public powers and institutional designs should be made more carefully.
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