Explain the concept of public goods as a local pure public good.

A local pure public good refers to a type of public good that is both non-excludable and non-rivalrous, and its benefits are limited to a specific local area or community.

Non-excludability means that once the local pure public good is provided, it is impossible to exclude any individual from enjoying its benefits. This is because it is difficult to charge a price or prevent someone from accessing the good. For example, if a local park is established, it is challenging to prevent anyone from entering and enjoying its facilities.

Non-rivalry implies that the consumption of the local pure public good by one individual does not reduce its availability or benefits for others. In other words, the use of the good by one person does not diminish its use or enjoyment by others. For instance, if a local fireworks display is organized, one person's enjoyment of the fireworks does not prevent others from experiencing the same enjoyment.

The concept of a local pure public good is particularly relevant at the local level because the benefits are confined to a specific geographic area or community. This means that individuals outside the local area cannot directly benefit from the good without physically accessing the area. For example, a local beach or a community swimming pool would primarily benefit the residents of that specific locality.

The provision of local pure public goods often requires government intervention or collective action because private markets may not adequately provide them. This is because private firms have difficulty charging a price for the good or excluding individuals from using it. As a result, the government or local authorities typically step in to provide and maintain these goods, funded through taxes or other forms of public financing.

Overall, the concept of a local pure public good highlights the importance of providing goods and services that benefit a specific local area or community, and the need for collective action or government intervention to ensure their provision.