罗森第九版英文财政学课件chap004.pptx

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
Types of Goods
EXCLUDABLE
RIVAL
YES
NO
YES
NO
PRIVATEGOODS
PUBLICGOODS
COMMONRESOURCES
NATURAL
MONOPOLY
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
impure public good
modity can satisfy one part of the definition of a public good but not the other
Some things that are not conventionally thought of modities have public good characteristics
Private goods are not always provided only by the private sector
publicly provided private goods
Public provision of a good does not necessarily mean that it is also produced by the public sector
Some Other Public Goods
Basic research
Programs to fight poverty
Uncongested non-toll roads
Fireworks display
Efficient Provision of Private Goods
Price
Adam (DfA)
Eve (DfA)
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
DfA
DfE
DfA+E
0
Sf
$
Quantity of Pizza
4-6
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
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
0
DrA
DrE
DrA+E
Sr
Quantity of Fireworks
$
4-9
Pareto E