Governments often choose deficit financing over budget cuts or tax increases to fund public goods, driven by the political unpopularity of the latter options. This study investigates the potential trade-off between maintaining prudent public finances and securing voter support by analyzing the...

Most pure public goods like lighthouses, dams, or national defense provide utility mainly by insuring against hazardous events. Our paper focuses on this insurance character of public goods. As for private actions against hazardous events, one can distinguish between self-insurance (SI) and...

Many public goods like dams, fire departments, and lighthouses do not provide direct utility but act more as insurance devices against floods, fire, and shipwreck. They either diminish the probability or the size of the loss. We extend the public good model with this insurance aspect and...

Many public goods like lighthouses and fire departments do not provide direct utility but act as insurance devices against shipwreck and destruction. They either diminish the size and/or the probability of the loss. We extend the public good model with this insurance aspect and generalize...

Defense spending accounts for a large share of the budget in many countries, but the value of the resulting public good - national defense - has so far escaped assessment. Much of the literature has instead considered indirect benefits of defense spending in terms of greater economic growth or...