Skip to main content
Journal Publication

Financing of Public Goods through Taxation in a General Equilibrium Economy: Experimental Evidence

We use a laboratory experiment to compare general equilibrium economies in which agents individually allocate their private goods among consumption, investment in pro­duction. and replenishing or refurbishing a depreciating public facility in a dynamic game with long-term investment opportunities. The public facility is financed either by volun­tary anonymous contributions (VAC) or taxes.