1 / 8

Public Goods

Public Goods. Chapter 7. 7.1 Optimal Provision of Public Goods. 7.2 Private Provision of Public Goods. 7.3 Public Provision of Public Goods. 7.4 Conclusion. Optimal Provision of Public Goods. 7 . 1. Optimal Provision of Public Goods. 7 . 1. Optimal Provision of Private Goods.

fitzgerald-emerson
Download Presentation

Public Goods

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Public Goods Chapter 7 7.1 Optimal Provision of Public Goods 7.2 Private Provision of Public Goods 7.3 Public Provision of Public Goods 7.4 Conclusion

  2. Optimal Provision of Public Goods 7 . 1

  3. Optimal Provision of Public Goods 7 . 1 Optimal Provision of Private Goods

  4. Optimal Provision of Public Goods 7 . 1 Optimal Provision of Private Goods Consumers demand different quantities of the good at the same market price. The optimality condition for the consumption of private goods is written as: Equilibrium on the supply side requires: In equilibrium, therefore,

  5. Optimal Provision of Public Goods 7 . 1 Optimal Provision of Public Goods The social-efficiency-maximizing condition for the public good is: Private-Sector Underprovision The free rider problem… Can Private Providers Overcome the Free Rider Problem?

  6. Private Provision of Public Goods 7 . 2 When Is Private Provision Likely to Overcome the Free Rider Problem? Some Individuals Care More than Others Altruism Warm Glow

  7. Public Provision of Public Goods 7 . 3 Private Responses to Public Provision: The Problem of Crowd-Out… Contributors vs. Noncontributors Warm Glow Evidence on Crowd-Out

  8. Public Provision of Public Goods 7 . 3 Measuring the Costs and Benefits of Public Goods How Can We Measure Preferences for the Public Good?

More Related