Dynamic public provision leads to income subsidies over public goods.
Public goods are often not provided enough in private settings, but in dynamic situations, cooperation can be sustained efficiently. Public provision allows for income redistribution along with funding the public good, resulting in higher levels of redistribution at higher patience levels. Private provision tends to lead to equal increases in the public good for all groups, while public provision allows for a wider range of tax rates, including benefit taxation and progressive taxation based on preferences and incomes.