Public goods require government provision from "summary" of The Economic Naturalist by Robert H. Frank
Public goods are goods that are non-excludable and non-rivalrous. This means that once they are provided, everyone can benefit from them, and one person's consumption of the good does not diminish another person's ability to consume it. Examples of public goods include national defense, clean air, and lighthouses. Because public goods are not excludable, individuals have an incentive to free-ride, or enjoy the benefits of the good without paying for it. This can lead to under-provision of public goods in the free market. For example, if a private firm were to provide national defense, it would not be able to exclude non-payers from benefiting from the defense, leading to insufficient funding for defense provision. This is where government provision comes in. Governments can collect taxes from individuals to fund the provision of public goods. By pooling resources through taxation, governments can ensure that public goods are provided efficiently and that free-riding is minimized. Furthermore, governments have the authority to enforce contributions to the provision of public goods. Individuals who do not pay taxes can face penalties or other consequences. This helps to ensure that everyone pays their fair share for the benefits they receive from public goods.- Public goods require government provision because of their non-excludable and non-rivalrous nature. Governments have the ability to collect taxes, enforce contributions, and pool resources to efficiently provide public goods and prevent free-riding. Without government intervention, public goods may be under-provided in the free market.
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