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May 4 2014 11:06am
I need help understanding and completing one of my economics public goods assignments for a college course. While I realize most people will likely not be able to help me with this assignment, if someone can help me understand the homework I will be willing to pay them 3K FG per problem they can help me with! I need this preferably done today, but at the latest in three days!

1) Assume that there are N individuals and all individuals have utility function of the form

u(x,yi) = ai*ln(x)+bi*yi

Derive the Samuelson Rule for the provision of public goods if the planner has the constraint:

p(summation from i=1 to N yi) + qx = K

2) There are two individuals that consume the public good x and private good yi. The individuals have an endowment of 20 and the prices of the public good and private good are both 1.
Individual 1 has a utility function u1(x,y1) = 2x + y1
Individual 2 has a utility function u2(x,y2) = 3x + y2
Individual 3 has a utility function u3(x,y3) = 4x + y3

a) What is the optimal level of public goods provided if you use the Samuelson Rule?
b) Will the competitive equilibrium provide the optimal level of public goods?
c) Find the Lindahl-Wicksell tax shares t1, t2, and t3.

3) There are two individuals that consume the public good x and private good yi. The individuals have an endowment of 20 and the prices of the public good and private good are both 1.
Individual 1 has a utility function u1(x,y1) = ln(x) + y1
Individual 2 has a utility function u2(x,y2) = 2*ln(x) + y2

Construct a tax scheme that will lead to truthful revelation of preferences so that the optimal level of publics goods will be provided and will not result in a budget deficit. Calculate the amount of taxes each individual will pay.
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