Public Goods

Flashcards covering vocabulary and concepts related to public goods, their definitions, types, and economic theories.

Public Goods

Things that do not lend themselves to private production, purchase, and sale, and must be provided for everyone if they are to be had at all.

Collective Choice

A principle stating that public goods are produced by collective agreement and shared costs among members of society.

Merit Goods

Goods that the government believes will be under-consumed if left solely to the market, such as education and public transportation.

Mixed Goods

Goods that are partially excludable or partially rivalrous, such as healthcare and toll roads.

Private Goods

Excludable and rivalrous goods that are subject to ownership rights, like housing and personal electronics.

Non-excludable Goods

Goods that cannot be restricted from use by anyone, characteristic of public goods.

Non-rivalrous Goods

Goods where one person's consumption does not reduce availability for others.

Free-Rider Problem

A situation where individuals benefit from public goods without contributing to their cost.

Pigou's Theory

Argues that public goods should be provided at a level where marginal satisfaction equals marginal dissatisfaction from taxes.

Bowen's Theory

Defines public goods as those where exclusion is not possible, emphasizing the importance of collective demand.

Lindahl's Theory

Proposes that each individual should pay a tax rate equal to their marginal utility from the public good.

Positive Externalities

Beneficial side effects for third parties, such as improved property values from maintained public parks.

Government Intervention

Action taken by the government to ensure adequate provision and maintenance of public goods.

Accessibility and Equity

The government's role in ensuring that public goods are available to all, promoting social equity.

Public-Private Partnerships

Collaborations between government and private entities to provide and manage public goods.

Tangible Products of Public Goods

Physical items provided as public goods, such as roads and public parks.

Intangible Products of Public Goods

Services or benefits provided as public goods, like emergency services and disaster relief.

Economic Rent-Seeking

When resources are used to gain economic benefits through manipulation or exploitation of public policy.