Reciprocity: The Supply of Public Goods Through Voluntary Contributions

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ID: 299043
1984
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Abstract
In modern economies, there are two main ways of financing the production of goods and services. One way is by charging consumers: if you consume, you must pay. The other way is by raising taxes: whether you consume or not, you must pay. But there is also a third way, characteristic of what I shall call the voluntary sector, which is to finance production out of voluntary contributions: whether you consume or not, you choose for yourself whether you pay. There can be no doubt that this third method does sometimes work. In the United Kingdom, for example, the lifeboat service is financed by voluntary contributions and the blood transfusion service is dependent on unpaid donors. Much medical research is funded by gifts; many theatres, orchestras and sports clubs are able to continue only through the success of their fund-raising appeals; trade unions manage to exist where there is no compulsion on anyone to join. This is an economic phenomenon that needs to be explained. In this paper I shall propose a theory of the voluntary sector, based on the assumption that most people believe free riding to be morally wrong.
Reference Key
openalex_W2064800538 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Robert Sugden
Journal the economic journal
Year 1984
DOI
10.2307/2232294
URL
https://doi.org/10.2307/2232294
Keywords Keywords not found

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