Arbeitspapier
Public-good valuation and intrafamily allocation
I derive values of marginal changes in a public good for two-person households, measured alternatively by household member i's willingness to pay (WTP) for the good on behalf of the household, WTPi(H), or by the sum of individual WTP values across family members, WTP(C). Households are assumed to allocate their resources in efficient Nash bargains over private and common household goods. WTPi(H) is then found by trading off the public good against household goods, and WTP(C) by trading the public good off against private goods. I then find that WTPi(H) is higher (lower) when member i has a high (low) marginal valuation of the public good, but on average represents WTP(C) correctly. Individuals then tend to represent households correctly on average when questioned about the household's WTP for a public good, even when they are purely selfish and answer truthfully. Counting all members? WTP answers on behalf of the household then leads to double counting. Pure and paternalistic altruism (the latter attached to consumption of the public good) move each member's WTP on behalf of the household closer to the true aggregate WTP, but only the latter raises aggregate WTP.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 1351
- Classification
-
Wirtschaft
Altruism; Philanthropy; Intergenerational Transfers
Household Production and Intrahousehold Allocation
Recreational Aspects of Natural Resources
Public Goods
- Subject
-
public goods
willingness to pay
contingent valuation
intrafamily allocation
Nash bargaining
Willingness to pay
Öffentliches Gut
Familie
Theorie
- Event
-
Geistige Schöpfung
- (who)
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Strand, Jon
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2004
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Strand, Jon
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2004
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