Erik Lindahl


Erik Lindahl

Erik Robert Lindahl (November 21, 1891 in Stockholm – January 6, 1960 in Uppsala) was a Swedish economist and a member of the Stockholm school.

In 1919, Lindahl proposed a method of financing public goods that was close to a free market solution and is today known as benefit pricing. This methods leads to a so called Lindahl equilibrium. The prices determined in equilibrium are called Lindahl prices.The major detriment of Lindahl's device is that it is not "incentive compatible": It imposes a free rider problem.

Works (small selection)

* 1939: "Studies in the Theory of Money and Capital"
* 1919: "Die Gerechtigkeit der Besteuerung" (German, translated as "Just Taxation: A positive solution", 1958)

External links

* [http://cepa.newschool.edu/het/profiles/lindahl.htm Lindahl's work]


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