Inputs
About & Assumptions
This calculator implements the Samuelson rule for efficient provision: provide the public good up to the point where the sum of marginal benefits equals the marginal cost.
- Agent marginal benefits are modeled as linear and weakly decreasing in G. Negative marginal benefits are truncated at zero.
- When the sum of marginal benefits at G = 0 is not above the unit cost, the efficient level is zero (corner solution).
- If marginal benefits never decline sufficiently to meet the unit cost, no finite interior solution exists; a policy bound is then required.
- Lindahl prices are reported as each agent’s marginal benefit at the computed level.