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The Theory of Public Goods

In: Principles of Public Finance

Author

Listed:
  • Toshihiro Ihori

    (National Gradual Institute for Policy Studies)

Abstract

In Chap. 8 , we investigated taxation from the viewpoint of efficiency. In this chapter, we investigate government spending from the viewpoint of efficiency. Here, the notion of public goods is important. As explained in Chap. 1 , public goods have properties of non-rivalness and non-excludability. Non-rivalness in consumption means that an increase in someone’s consumption does not reduce the availability of consumption for others. Non-excludability means that someone cannot be excluded from consuming a good because of technical or other reasons simply because she or he does not pay the price.

Suggested Citation

  • Toshihiro Ihori, 2017. "The Theory of Public Goods," Springer Texts in Business and Economics, in: Principles of Public Finance, chapter 11, pages 295-327, Springer.
  • Handle: RePEc:spr:sptchp:978-981-10-2389-7_11
    DOI: 10.1007/978-981-10-2389-7_11
    as

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