ECO 330T Notes - ECO 330T Notes 9/9/08 -for paper proposal,...

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ECO 330T Notes 9/9/08 -for paper proposal, make a clear statement of the focus, a question you'd like to have answered as the main topic, 1-2 paragraphs A public good is non-rival, non-excludable (fireworks, stars in the sky, national defense). The capacity to absorb waste is a commonly owned resource. If we say clean air, we’re talking about a public good. If we say the capacity of the air to absorb pollution, it’s a common resource. Is there such thing as a pure/perfect public good? Not really, it’s just a category of good and we accept that it exists. Externalities can be brought into the economic system. It is usually positive to do so. At one time, highways were a public good inspired by national defense that allowed for good escape routes from nuclear attacks and to transport military goods. Now, the highways are rival because one person using the highway excludes another person from using that same exact space (thus we have traffic). Why have public goods been provided at less than efficient quantities? Not all of the
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ECO 330T Notes - ECO 330T Notes 9/9/08 -for paper proposal,...

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