Working Paper 10/243 - abstract

Nature of Human Capital, Technology and Ownership of Public Goods (PDF, 311kB)

Maija Halonen-Akatwijuka

Besley and Ghatak (2001) show that public good should be owned by the agent who values the public good most — irrespective of technological factors. In this paper we relax their assumptions in a natural way by allowing the agents to be indispensable and show that relative valuations are not the sole determinant of optimal ownership structure but also nature of human capital and technology matter.