IBE316-6 - IBE 316 Economic Policy Stiglitz: Economics of...

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IBE 316 Economic Policy Stiglitz: Economics of the Public Sector Chapter 6: Public Goods and Publicly Provided Private Goods Keisuke OTSU Sophia University FLA Spring 2008 OTSU (Sophia University FLA) IBE 316 Spring 2008 1 / 15
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Overview Public Expenditure Theory Public Expenditure Theory deals with What public goods are (Ch.6) How the level of expenditures on public goods is determined (Ch.7) Public production (Ch.8) Government policies against externalities (Ch.9) OTSU (Sophia University FLA) IBE 316 Spring 2008 2 / 15
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Overview Focus Questions What distinguishes public goods? Why will private markets undersupply public goods Why do governments provide goods which are not pure public goods? What determines an e¢ cient supply of pure public goods In what sense is e¢ cient government a public good? OTSU (Sophia University FLA) IBE 316 Spring 2008 3 / 15
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Public Goods Distinguishing public goods Rival consumption: if a good is used by one person, it cannot be used by another Public goods are non-rival consumption goods National defense, national parks etc. are non-rival goods goods National defense, national parks etc. are non-exclusionary Pure public goods: goods for which there is no rivalry in consumption and for which exclusion is impossible OTSU (Sophia University FLA) IBE 316 Spring 2008 4 / 15
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Public Goods and Market Failures For non-rival goods (eg.TV)
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This note was uploaded on 10/22/2011 for the course ECON 316 taught by Professor Keisukeotsu during the Spring '08 term at Sophia University.

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IBE316-6 - IBE 316 Economic Policy Stiglitz: Economics of...

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