Political Equilibrium and the provision of public goods

Commentary by John C Goodman

This paper treats interest groups – people in their role as consumers of a public good and people in their role as taxpayers – as the unit of account for representative voting. Each group is allowed to make an effort to support its preferred candidate and, at the margin, the effort-benefit ratio is the political price the group is willing to pay to secure an additional dollar of benefits.

Political Equilibrium and the provision of public goods