罗森第九版英文《财政学》课件cha课件.ppt

CHAPTER 4,Public Goods,Copyright 2010 by the McGraw-Hill Companies,Inc.All rights reserved.,McGraw-Hill/Irwin,Characteristics of Goods,Excludable vs.Nonexcludable Excludable preventing anyone from consuming the good is relatively easyNonexcludable preventing anyone from consuming the good is either very expensive or impossibleRival vs.Nonrival Rival once provided,the additional resource cost of another person consuming the good is positiveNonrival once provided,the additional resource cost of another person consuming the good is zero,0,Types of Goods,PRIVATEGOODS,PUBLICGOODS,COMMONRESOURCES,NATURALMONOPOLY,Noteworthy Aspects of Public Goods,Even though everyone consumes the same quantity of the good,it need not be valued equally by allClassification as a public good is not absolute;it depends on market conditions and the state of technologyimpure public goodA commodity can satisfy one part of the definition of a public good but not the otherSome things that are not conventionally thought of as commodities have public good characteristicsPrivate goods are not always provided only by the private sectorpublicly provided private goodsPublic provision of a good does not necessarily mean that it is also produced by the public sector,Some Other Public Goods,Basic researchPrograms to fight povertyUncongested non-toll roadsFireworks display,Efficient Provision of Private Goods,0,DfA,DfE,DfA+E,0,Sf,$,Quantity of Pizza,4-7,Pareto Efficiency Private Goods Case,MRSfa=Pf/PaSet Pa=$1MRSfa=PfDfA shows MRSfa for AdamDfE shows MRSfa for EveSf shows MRTfaNecessary condition for Pareto efficiency:MRSfaAdam=MRSfaEve=MRTfa,Efficient Provision of Public Goods,0,0,DrA,DrE,DrA+E,Sr,Quantity of Fireworks,$,4-10,Pareto Efficiency Public Goods Case,MRSfa=Pf/PaSet Pa=$1MRSfa=PfDfA shows MRSfa for AdamDfE shows MRSfa for EveSf shows MRTfaNecessary condition for Pareto efficiency:MRSfaAdam+MRSfaEve=MRTfa,Problems Achieving Efficiency,The Free-Rider ProblemSolutions to the free-rider problemPerfect price discriminationPolicy Perspective:Global Positioning SystemDo people free ride?,0,Laboratory Experiments and Free-Riding,How a typical experiment worksTypical resultsPeople contribute about 50%of resources to provision of public goodContributions fall the more often the game is repeatedCooperation fostered by prior communicationContribution rates decline when opportunity cost of giving goes up“Warm-glow”giving,The Privatization Debate,Privatization taking services supplied by government and turning them over to the private sectorPublic v Private Provision:What is the right mix?Relative wage and materials costsAdministrative costsDiversity of tastes,Distributional Issues,Commodity egalitarianism notion that some commodities ought to be made available to everyone,Public versus Private Production,Efficiency of private productionProblems in comparing cost differencesIncomplete contractsCompetition to supply good or serviceReputation buildingPolicy Perspective:Should airport security be produced publicly or privately?Market Environment,Preference Revelation Mechanisms,TEve=MRTra(MRSraTotal MRSraEve)Eves choice:TEve=MRSraEveBy substitution:MRTra(MRSraTotal MRSraEve)=MRSraEveAdd(MRSraTotal MRSraEve)to both sides:MRTra=MRSraTotal,