Exact Aggregation and the Demand for Public Goods

Abstract

Extends Mäler′s notion of weak complementarity between a private good and a public good to non‐homothetic demand functions which can be exactly aggregated. Aggregate demand functions depending on private prices, public good quantities and income distribution statistics can then be used to recover the private individual demand functions which reveal an individual′s willingness to pay for public goods.

Citation

Weber, W.L. (1992), "Exact Aggregation and the Demand for Public Goods", Journal of Economic Studies, Vol. 19 No. 4. https://doi.org/10.1108/01443589210021398