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From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by
Steven
N.
Durlauf
and
Lawrence
E.
Blume
Alternate versions available:
1987 Edition
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Abstract
This article provides a mathematical and diagrammatic exposition of the theory of public goods as originally formulated by Paul Samuelson. It describes the extension of the model to take account of the costs of distortionary taxation, and discusses the concept of the marginal cost of public funds. Different types of public goods (such as mixed goods and local and global public goods) are discussed before a survey of the incentive problems related to preference revelation.
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Keywords
benefit theory of taxation; clubs; cost–benefit analysis; direct democracy; distortionary taxation; externalities; free-rider problem; global public goods; international migration; Lindahl equilibrium; local public finance; local public goods; lump-sum taxes; marginal cost of public funds; marginal rate of substitution; marginal rate of transformation; market failure; mixed goods; non-rivalry in consumption; optimal taxation; Pigou, A. C.; public factors of production; public finance; public goods; pure public goods; redistribution of income and wealth; revealed preferences; Samuelson, P. A.; second best; shadow pricing; single-peaked preferences; tax incidence; Tiebout hypothesis; voluntary provision of public goods; voting; willingness to payBack to top
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How to cite this article
Sandmo, Agnar. "public goods." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 02 September 2010 <http://www.dictionaryofeconomics.com/article?id=pde2008_P000245> doi:10.1057/9780230226203.1364
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