BibTeX
@MISC{Weston_theprivate,
author = {Jake Weston and Carleton College},
title = {The Private Provision of Public Goods},
year = {}
}
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Abstract
The private provision of public goods represents an important issue within discussions of economic decisions. Historically, economists believed that private agents could not succeed in privately supplying public goods at an efficient level due to incentives for free-riding. New theories and economic experiments developed within the last thirty years, however, have brought that conclusion into question. Now, economists recognize that under certain conditions, private agents have the potential to supply public goods without government intervention. This paper uses an empirical investigation of Neighborhood Watch participation in the city of Chicago to analyze what demographic factor, if any, influence the private supply of public goods. This paper finds surprising evidence that population characteristics like group heterogeneity do not play a measurable role in determining Neighborhood Watch involvement. Instead, this paper finds evidence that variables measuring the duration of interaction between residents and the costs and benefits of Neighborhood Watch program better explain variations in participation.
Keyphrases
public good private provision private agent economic experiment economic decision new theory neighborhood watch participation surprising evidence important issue group heterogeneity private supply neighborhood watch involvement demographic factor last thirty year efficient level population characteristic measurable role government intervention certain condition empirical investigation neighborhood watch program
