This article attempts to clarifv two controversial issues in the theory of clubs: (I) Abstract Is the Buchanan (Economica 1965) framework similar to the Tiebout (JPE
1956)? (2) Is the Pareto optimality condition of Ng(Economica 1973) generally
applicable? Buchanan's own authoritv is invoked to give a negative answer to
issue 1. A negative answer to issue 2 is refuted as being based on a misinterpreta tion of Ng's method of maximizing Pareto optimality or total net benefit ofthe
whole population as that of one club.
References
1.
Brennan, G. and M. Flowers (1980) "All 'Ng' up on clubs?: some notes on the current status of club theory," Public Finance Q. (April): 153-169.
2.
Buchanan,J.M. (1965) "An economic theory of clubs," Economica (February): 1-14.
3.
Ng, Y-K. (1979) Welfare Economics: Introduction and Development of Basic Concepts. London: Macmillan .
4.
——— (1973) "The economic theory of clubs: pareto optimality conditions," Economica (August): 291-298.
5.
Tiebout, C.M. (1956) "A pure theory of local expenditure," Journal of Political Economy (October): 416-424.
