Public Goods and Minimum Provision Levels: Does the institutional formation affect cooperation?

Martinsson, Peter
Persson, Emil
Dept. of Economics, University of Gothenburgsv
2016-04-06T07:45:13Z
2016-04-06T07:45:13Z
2016-04
JEL:C91, D72, H41sv
We investigate the role of institutional formation on the implementation of a binding minimum contribution level in a linear public goods game. Groups either face the minimum level exogenously imposed by a central authority or are allowed to decide for themselves by means of a group vote whether or not a minimum level should be implemented. We find a binding minimum contribution level to have a positive and substantially significant effect on cooperation. The main impact is on the extensive margin, meaning that it is possible to force free riders to increase their contribution without crowding out others’ voluntary contributions. This result is robust to the mode of implementation and thus when the minimum level is enforceable, it is a simple policy that will increase provision of the public good.sv
31sv
1403-2465
http://hdl.handle.net/2077/42418
engsv
Working Papers in Economicssv
655sv
Public goodssv
Minimum levelsv
Votingsv
Experimentsv
Public Goods and Minimum Provision Levels: Does the institutional formation affect cooperation?sv
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reportsv

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