The State Finance and Public Goods from The General Equilibrium Viewpoint: Fundamental Welfare Theorems for Lindahlian General Equilibrium with Money

Urai, Ken; Murakami, Hiromi; Kobayashi, Daisuke

The State Finance and Public Goods from The General Equilibrium Viewpoint: Fundamental Welfare Theorems for Lindahlian General Equilibrium with Money

Urai, Ken; Murakami, Hiromi; Kobayashi, Daisuke

Discussion Papers In Economics And Business, 2023, 23-08, 1-12

Number of Access:369（2025-08-27 00:17 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/91454

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Title	The State Finance and Public Goods from The General Equilibrium Viewpoint: Fundamental Welfare Theorems for Lindahlian General Equilibrium with Money
Creator	NRID 1000000203597 1000000203597 researchmap permalink read0175173 read0175173 Scopus Author ID 24287014300 24287014300 CreatorName Urai, Ken
	NRID 1000080803072 1000080803072 CreatorName Murakami, Hiromi
	NRID 1000030728176 1000030728176 CreatorName Kobayashi, Daisuke
Subject	Lindahl Equilibrium
	General Equilibrium
	Fundamental Theorems of Welfare Economics
	Public Goods
	Satiation
	Money
Abstract	This paper deals with the concept of Lindahl general equilibrium with money and its relation to the first and second fundamental theorems of welfare economics and other problems like core arguments. This paper is concerned with the question of how the optimal supply of public goods can be achieved in an ideal situation based on market transactions. The paper also points out that unless the (Lindahlian) financing problem is treated together with the fiscal problem of the state (asa monetary equilibrium), the fundamental theorems of economics may lead to the wrong message in terms of policy. The ideal state described in this paper is one in which public and private firms and their profits are clearly distinguished, and in which the optimal allocation is feasible only under a constant government deficit. This is not addressed in the traditional Lindahl general equilibrium and cost-sharing equilibrium. Also, under such a general situation, the activity criterion for public firms in the ideal state is organized as a special type of marginal cost pricing. The framework of this paper, including government activities (optimal money issuance and taxation), is of extremely urgent significance, especially as seen in the recent problems of health care costs and state finances.
Publisher	Graduate School of Economics, Osaka University
Source Title	Discussion Papers In Economics And Business
Volume (Issue)	23-08
Page	1-12
Date of Issued	2023-06
Language	English
Handle URL	https://hdl.handle.net/11094/91454
Relation.references	URI http://www2.econ.osaka-u.ac.jp/econ_society/dp/2308.pdf
Access Rights	metadata only access
Category	ディスカッション／ワーキング・ペーパー DP/WP
Category	Discussion Papers In Economics And Business

Resource Type	technical report
Local Type	DP/WP
DCMI Type	Text
DCTERMS.bibliographicCitation	Discussion Papers In Economics And Business. 2023, 23-08, p. 1-12
DC.title	The State Finance and Public Goods from The General Equilibrium Viewpoint: Fundamental Welfare Theorems for Lindahlian General Equilibrium with Money
DC.creator	Urai, Ken
	Murakami, Hiromi
	Kobayashi, Daisuke
DC.publisher	Graduate School of Economics, Osaka University
DC.language' scheme='DCTERMS.RFC1766	English
DC.type' scheme='DCTERMS.DCMIType	Text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2023-06
DC.relation' scheme='DCTERMS.URI	http://www2.econ.osaka-u.ac.jp/econ_society/dp/2308.pdf
DC.subject	Lindahl Equilibrium
	General Equilibrium
	Fundamental Theorems of Welfare Economics
	Public Goods
	Satiation
	Money
DCTERMS.abstract	This paper deals with the concept of Lindahl general equilibrium with money and its relation to the first and second fundamental theorems of welfare economics and other problems like core arguments. This paper is concerned with the question of how the optimal supply of public goods can be achieved in an ideal situation based on market transactions. The paper also points out that unless the (Lindahlian) financing problem is treated together with the fiscal problem of the state (asa monetary equilibrium), the fundamental theorems of economics may lead to the wrong message in terms of policy. The ideal state described in this paper is one in which public and private firms and their profits are clearly distinguished, and in which the optimal allocation is feasible only under a constant government deficit. This is not addressed in the traditional Lindahl general equilibrium and cost-sharing equilibrium. Also, under such a general situation, the activity criterion for public firms in the ideal state is organized as a special type of marginal cost pricing. The framework of this paper, including government activities (optimal money issuance and taxation), is of extremely urgent significance, especially as seen in the recent problems of health care costs and state finances.
DC.format	91454
citation_title	The State Finance and Public Goods from The General Equilibrium Viewpoint: Fundamental Welfare Theorems for Lindahlian General Equilibrium with Money
citation_author	Urai, Ken
	Murakami, Hiromi
	Kobayashi, Daisuke
citation_publisher	Graduate School of Economics, Osaka University
citation_language	English
citation_date	2023-06
citation_journal_title	Discussion Papers In Economics And Business
citation_volume	23-08
citation_firstpage	1
citation_lastpage	12
citation_public_url	https://hdl.handle.net/11094/91454
citation_abstract_html_url	http://www2.econ.osaka-u.ac.jp/econ_society/dp/2308.pdf

The State Finance and Public Goods from The General Equilibrium Viewpoint: Fundamental Welfare Theorems for Lindahlian General Equilibrium with Money

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