Ch04 PUBLIC GOODS（课件）- 《财政金融英文版》同步教学（人民大学版）

PUBLIC GOODS C h a p t e r 4 Public Goods Are goods with benefits that cannot be withheld from those who do not pay and are shared by large groups of consumers Usually made available politically through voting on how much to supply Are nonrival in consumption, meaning that a given quantity of a public good can be enjoyed by more than one consumer without decreasing the amounts enjoyed by rival consumers Are nonexclusive, meaning it is too costly to exclude those who refuse to pay from enjoying the benefits Pure Public and Pure Private Goods Pure public good – nonrival in consumption for an entire population of consumers, nonexclusive Results in widely consumed external benefits Not divisible into units that can be apportioned Pure private good – provides benefits only to the person who acquires the good, not anyone else; is rival in consumption Results in neither positive or negative externalities Marginal Costs of Consuming a Pure Public Good Marginal Costs of Producing a Pure Public Good Range of Benefits Some public goods, such as world peace, may provide collectively consumed benefits to every individual on earth. Some are collectively consumed within given nations, others locally consumed Geographic range of shared benefits influences the desirability of having public goods supplied by various levels of government: Federal, state, local Congestible Public Goods Goods for which crowding or congestion reduces the benefits to existing consumers when more consumers are accommodated Marginal cost of accommodating an additional consumer is not zero after the point of congestion is reached E.g., a user of a congested road decreases the benefits to existing users by slowing traffic, increasing accident risk Congestible Public Goods Price-excludable Public Goods Goods with benefits that can be priced Membership rights to private clubs Schools, hospitals Can be individually consumed and are subject to exclusion, but their production and consumption is likely to genera