A large economics literature seeks to understand the reasons why individuals make charitable contributions. Fundamental features of most models of charitable giving are the inclusion of externalities induced by other agents and the Lancasterian characteristics approach to specifying utility...

We report on the results of analytical and numerical models that describe the effects of non-separable externalities (or public goods) on public policies with important general equilibrium consequences. In the numerical exercise, we calibrate a general equilibrium model with non-separable air...