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The Topology of Pareto-Optimal Regions with Public Goods

Econometrica 1974 42(4), 643
[This analysis generalizes the concept of a private-goods contract curve to an economy with public goods. It provides a derivation of the properties of the set of Pareto-optimal points in n-space. The paper concentrates on situations where the taxation system for financing the public goods is externally imposed; the efficiency goal is thus "mechanism-constrained Pareto optimality." The results of the main analysis are applied to assess performance of several group decision procedures.]