Lindahl and Equilibrium [chapter]

Anne van den Nouweland
2015 Studies in Choice and Welfare  
This paper demonstrates that there is a discrepancy between the ideas expressed in Lindahl (1919) and the current-day definition of Lindahl equilibrium. It describes how the ideas expressed by Lindahl (1919) developed into the equilibrium concept for public good economies that now carries Lindahl's name. The paper also touches on a seemingly forgotten equilibrium concept for public good economies known as ratio equilibrium, and explains that from an axiomatic perspective this equilibrium
more » ... equilibrium concept is a better fit with the ideas expressed in Lindahl (1919). . I am grateful to Nick Baigent for suggesting to me that I write this paper, which started as a simple project explaining the discrepancy between the concept known as Lindahl equilibrium and the ideas expressed in Lindahl (1919), but ended up being a detective story. I am indebted to Peter Lambert, Nicholas Sly, and two anonymous referees for their comments which helped me improve the paper, and to Myrna Wooders for advocating the axiomatic technique to study equilibrium concepts in (local) public good economies.
doi:10.1007/978-3-662-46439-7_18 fatcat:vgduj4gmqrgjhhpgy4rpgqg22m