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Public Goods And The Problem Of Economic Calculus

Author

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  • Gabriel-Andrei Donici

    (Alexandru Ioan Cuza University of Iasi, Romania)

  • Cristian Incaltarau

    (Alexandru Ioan Cuza University of Iasi, Romania)

Abstract

Most papers regarding public goods have a certain predisposition to “classic aspects” like their characteristics of non-rivalry and non-excludability. In this paper we try to emphasize that in the area of public goods one of the major problems is, in fact, the one of economic calculus. The reality is that public finances exist in a limited quantity so the public authority is forced to choose between ways to spend them. According to the definition of public goods the expenditures should be for the production of essential assets that are neglected by private investors. The problem is how to choose between public possibilities of spending the money after the application of the first criteria.

Suggested Citation

  • Gabriel-Andrei Donici & Cristian Incaltarau, 2010. "Public Goods And The Problem Of Economic Calculus," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 2(2), pages 37-42, June.
    • Handle: RePEc:jes:wpaper:y:2010:v:2:i:2:p:37-42
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    File URL: http://ceswp.uaic.ro/articles/CESWP2010_I2_DON.pdf
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    References listed on IDEAS

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    1. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    2. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
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    Cited by:

    1. Zbyslaw Dobrowolski & Grzegorz Drozdowski & Monika Dobrowolska & Janusz Sobon & Dariusz Sobon, 2021. "Economic Calculus and Weak Signals: Prevention Against Foggy Bottom," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 165-174.
    2. Grzegorz Drozdowski, 2021. "Economic Calculus Qua an Instrument to Support Sustainable Development under Increasing Risk," JRFM, MDPI, vol. 14(1), pages 1-12, January.

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