The existence and uniqueness of equilibrium in the international public good model

Abstract

The international public good model is an extension of the public good model, allowing for different productivities of producing the public good across countries. By extending the proofs of Bergstrom et al. (1986, 1992), which are the seminal studies in the public good literature, this article develops an international public good model with proofs of the existence and uniqueness of equilibrium.

Keywords:

• international public good model
• equilibrium
• existence
• uniqueness

JEL Classification:

• H41
• F13
• D01

Acknowledgements

We are very grateful to Shinsuke Ikeda, Charles Horioka, Mototsugu Fukushige, Michi Nishihara, Masamitsu Onishi and seminar participants for their helpful comments. The research of the first author was supported by Grant-in-Aid 20530271 from the Ministry of Education, Culture, Sport, Science and Technology of Japan, the 2007 Zengin Foundation and the 2007 Japan Economic Research Foundation.