The efficient provision of public goods through non-distortionary tax contests

Thomas Giebe
Humboldt University at Berlin, Germany, Economic Theory I

*Paul Schweinzer
University of York, UK, Economics

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     Last modified: March 8, 2011
     Presentation date: 03/12/2011 9:00 AM in NH 1120, Session A
     (View Schedule)

Abstract
We use a simple balanced budget contest to collect taxes on a private good in order to finance a pure public good. We show that - with an appropriately chosen prize structure -this contest can provide the public good efficiently and without distortion.