资源简介

(共17张PPT)
PUBLIC GOODS
Chapter 4
Characteristics of Goods
Excludable vs. Nonexcludable
Excludable – preventing anyone from consuming the good is relatively easy
Nonexcludable – preventing anyone from consuming the good is either very expensive or impossible
Rival vs. Nonrival
Rival – once provided, the additional resource cost of another person consuming the good is positive
Nonrival – once provided, the additional resource cost of another person consuming the good is zero
0
4-*
Types of Goods
EXCLUDABLE RIVAL
YES NO
YES
NO
PRIVATE GOODS
PUBLIC GOODS
COMMON RESOURCES
NATURAL
MONOPOLY
4-*
Noteworthy Aspects of Public Goods
Even though everyone consumes the same quantity of the good, it need not be valued equally by all
Classification as a public good is not absolute; it depends on market conditions and the state of technology
A commodity can satisfy one part of the definition of a public good but not the other
Impure public good: rival or excludable
Some things that are not conventionally thought of as commodities have public good characteristics
Private goods are not always provided only by the private sector
publicly provided private goods: rival and excludable goods provided by govt
Public provision of a good does not necessarily mean that it is also produced by the public sector (e.g. garbage collection)
4-*
Some Public Goods
Basic research
Programs to fight poverty
Uncongested non-toll roads
Fireworks display
Honesty
National Defense
4-*
Efficient Provision of Private Goods
Price Adam (DfA) Eve (DfE) Market (DfA+E)
$11 5 1 6
$9 7 3 10
$7 9 5 14
$5 11 7 18
$3 13 9 22
$1 15 11 26
0
4-*
DfA
DfE
DfA+E
0
Sf
$
Quantity of Pizza
4-*
Pareto Efficiency – Private Goods Case
MRSfa = Pf/Pa
Set Pa = $1
MRSfa = Pf
DfA shows MRSfa for Adam
DfE shows MRSfa for Eve
Sf shows MRTfa
Necessary condition for Pareto efficiency: MRSfaAdam = MRSfaEve = MRTfa
4-*
Efficient Provision of Public Goods
Units of Fireworks
1 2 3 4
Adam (DrA) $300 $250 $200 $150
Eve (DfE) 250 200 150 100
Market (DfA+E) $550 $450 $350 $250
0
4-*
0
DrA
DrE
DrA+E
Sr
Quantity of Fireworks
$
4-*
Pareto Efficiency – Public Goods Case
MRSfa = Pf/Pa
Set Pa = $1
MRSfa = Pf
DfA shows MRSfa for Adam
DfE shows MRSfa for Eve
Sf shows MRTfa
Necessary condition for Pareto efficiency: MRSfaAdam + MRSfaEve = MRTfa
4-*
Problems Achieving Efficiency
The Free-Rider Problem
Solutions to the free-rider problem
Perfect price discrimination
Policy Perspective: GPS is non-rival but excludable since technology exist to scramble signals
0
4-*
Laboratory Experiments: Do People Free-Ride
How a typical experiment works
Typical results
People contribute about 50% of resources to provision of public good
Contributions fall the more often the game is repeated
Cooperation fostered by prior communication
Contribution rates decline when opportunity cost of giving goes up
“Warm-glow” giving
4-*
The Privatization Debate
Privatization – taking services supplied by government and turning them over to the private sector
Public Sector v Private Sector Provision: What is the right mix
Relative wage and materials costs: less expensive sector preferred on efficiency grounds
Administrative costs: large fixed adm costs can be spread over a large group under public sector
Diversity of tastes: larger diversity better handled by private sector
Commodity egalitarianism: some commodities ought to be made available to everyone better achieved under public sector
4-*
Public vs Private Production Debate
Which sector is more efficient
Theory that public sector managers have little incentive to be efficient
However, problems in comparing cost differences since quality of services offered by public and private sectors can differ. (e.g., hospitals)
Incomplete contracts
Competition to supply good or service
Reputation building
Ultimately depends on Market Environment facing the providers
4-*
Chapter 4 Summary
Public goods are nonrival and nonexcludable in consumption
Impure public goods exhibit some qualities of private and public goods
Efficient provision of public goods:
∑MRSixy= MRTxy i=person i…..n
An incentive exists to free-ride in the payment of public goods
Public goods can be provided privately; private goods can be provided publicly
4-*
Appendix: Preference Revelation Mechanisms for Public Goods
TEve = MRTra – (MRSraTotal – MRSraEve)
Eve’s choice: TEve = MRSraEve
By substitution: MRTra – (MRSraTotal – MRSraEve) = MRSraEve
Add (MRSraTotal – MRSraEve) to both sides: MRTra = MRSraTotal
4-*

展开更多......

收起↑