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A Theory of the Theory of Public Goods

  • Holcombe, Randall G

The article critically examines the traditional theory of public goods, it is an established part of the theory of public finance. The author shows that this theory in the form in which it is treated by its creators and authors of modern textbooks, can serve no empirical explanation for the production of a good in the public sector, no regulatory justification for such production. Then, the article developed political economy concept that the fact that some goods are produced and provided by the state, is due to the interests of the state, seeking to build up their own wealth and political power. In this context, the very theory of public goods and its promotion are explained as part of a system of institutions, ensuring the preservation and expansion of the power and influence of the state in society.

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Article provided by Springer in its journal Review of Austrian Economics.

Volume (Year): 10 (1997)
Issue (Month): 1 ()
Pages: 1-22

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Handle: RePEc:kap:revaec:v:10:y:1997:i:1:p:1-22
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  1. Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
  2. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
  3. Epple, Dennis & Romano, Richard E, 1996. "Public Provision of Private Goods," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 57-84, February.
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