Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9726871 | Journal of Public Economics | 2005 | 38 Pages |
Abstract
We analyze the design of incentive mechanisms for the provision of transnational public goods under asymmetric information. Transnational public goods are infrastructures that no single country can afford to build for itself. We show that the external constraints imposed by this mechanism may affect consumption, pricing and the true redistributive concerns of local governments. We characterize the corresponding distortions. We also discuss the impact of the preferences for redistribution of the international agency in charge of designing the mechanism and the role of its ability to enforce that mechanism.
Keywords
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Authors
Jean-Jacques Laffont, David Martimort,