财政学Public Goods.ppt

* * * * 4-* 1-* CHAPTER 4 Public Goods Copyright ? 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Characteristics of Goods Excludable vs. Nonexcludable Excludable – preventing anyone from consuming the good is relatively easy Nonexcludable – preventing anyone from consuming the good is either very expensive or impossible Rival vs. Nonrival Rival – once provided, the additional resource cost of another person consuming the good is positive Nonrival – once provided, the additional resource cost of another person consuming the good is zero 0 Types of Goods EXCLUDABLE RIVAL YES NO YES NO PRIVATEGOODS PUBLICGOODS COMMONRESOURCES NATURAL MONOPOLY Noteworthy Aspects of Public Goods Even though everyone consumes the same quantity of the good, it need not be valued equally by all Classification as a public good is not absolute; it depends on market conditions and the state of technology impure public good A commodity can satisfy one part of the definition of a public good but not the other Some things that are not conventionally thought of as commodities have public good characteristics Private goods are not always provided only by the private sector publicly provided private goods Public provision of a good does not necessarily mean that it is also produced by the public sector Some Other Public Goods Basic research Programs to fight poverty Uncongested non-toll roads Fireworks display Efficient Provision of Private Goods Price Adam (DfA) Eve (DfA) Market (DfA+E) $11 5 1 6 $9 7 3 10 $7 9 5 14 $5 11 7 18 $3 13 9 22 $1 15 11 26 0 DfA DfE DfA+E 0 Sf $ Quantity of Pizza 4-* Pareto Efficiency – Private Goods Case MRSfa = Pf/Pa Set Pa = $1 MRSfa = Pf DfA shows MRSfa for Adam DfE shows MRSfa for Eve Sf shows MRTfa Necessary condition for Pareto efficiency: MRSfaAdam = MRSfaEve = MRTfa Efficient Provision of Public Goods Units of Fireworks 1 2 3 4 Adam (DrA) $300 $250 $200 $150 Eve (Df