Gorman and Musgrave are Dual: An Antipodean Theorem on Public Goods

Ted Bergstrom, University of California, Santa Barbara
Richard Cornes, Nottingham University

Abstract

This paper finds the conditions under which an allocation branch can determine the efficient amount of public goods to produce, independently of the distribution of private goods. The result is similar to that found in our Econometrica paper, but uses a quite different method--solving a differential equation.