Para garantizarle una navegación por nuestra web segura y de calidad, le informamos que utilizamos Cookies. Si está de acuerdo clique ACEPTAR. Puede bloquear o eliminar las cookies instaladas en su equipo mediante la configuración de las opciones del navegador. Para más información consulte nuestra Política de Cookies
Acepto
Instituto Valenciano de Investigaciones Económicas

Publicaciones

Public good provision and social loss under polarization
WP-AD 2017-03
Public good provision and social loss under polarization
Torregrosa, R.J.
Año de publicacion: 2017
Palabras clave: Public good, majority voting equilibrium, polarization
Clasificación JEL: D79, H41
DOI: http://dx.medra.org/10.12842/WPAD-2017-03
Resumen
This paper considers a population divided into two significantly-sized groups regarding the preferences its members have about a single public good. The public good equilibrium amount is that of the majority group in such a way that it is far from the Pareto-efficient one. This allows us to characterize a social loss function, which depends on the inter-group heterogeneity and the relative size of each group, parameters which also compound the degree of polarization. Our main conclusion is that, in general, higher levels of polarization do not imply higher social losses. This happens whenever the higher polarization is associated with higher inter-group heterogeneity, and the change in the amount of the public good in equilibrium implied is low enough.