Public Good, “Shared” Good
Public goods, also known as “shared” goods, are goods or services that are available to all members of a society, regardless of their individual contributions. Examples of public goods include clean air, national defense, and public parks. Public goods are non-excludable, meaning that it is impossible to prevent people from using them, and non-rivalrous, meaning that one person’s use of the good does not reduce the amount available for others.
History of Public Goods
The concept of public goods dates back to the 18th century, when economists such as Adam Smith and David Ricardo discussed the idea of public goods in their writings. In the 20th century, the concept of public goods was further developed by economists such as Paul Samuelson and Kenneth Arrow. Samuelson’s work on public goods laid the foundation for the modern understanding of the concept, while Arrow’s work focused on the implications of public goods for economic efficiency.
Comparison of Public and Private Goods
| Public Goods | Private Goods |
|---|---|
| Non-excludable | Excludable |
| Non-rivalrous | Rivalrous |
| Consumed by all | Consumed by individuals |
| No market price | Market price |
Summary
Public goods are goods or services that are available to all members of a society, regardless of their individual contributions. They are non-excludable and non-rivalrous, meaning that one person’s use of the good does not reduce the amount available for others. The concept of public goods dates back to the 18th century, and has been further developed by economists such as Paul Samuelson and Kenneth Arrow. For more information about public goods, visit websites such as the World Bank, the International Monetary Fund, and the United Nations.
See Also
- Private Goods
- Common Goods
- Free Goods
- Excludable Goods
- Rivalrous Goods
- Tragedy of the Commons
- Public Choice Theory
- Externalities
- Public Finance
- Public Policy
