Economics Public Goods Questions Medium
The concept of public goods as a national pure public good refers to goods or services that are non-excludable and non-rivalrous in nature, and are provided by the government for the benefit of the entire nation.
Non-excludability means that once the good or service is provided, it is difficult to exclude anyone from enjoying its benefits. For example, national defense is a public good because once the military is deployed to protect the country, it is challenging to exclude any individual from benefiting from that protection.
Non-rivalry means that the consumption of the good or service by one individual does not diminish its availability or utility for others. For instance, street lighting is a public good because the illumination it provides to one person does not reduce the illumination available to others.
National pure public goods are typically financed through taxation or government expenditure, as they are not efficiently provided by the private sector due to the free-rider problem. The free-rider problem arises when individuals can benefit from the good or service without contributing towards its provision. Since public goods are non-excludable, individuals have an incentive to free-ride and not pay for the good, leading to under-provision in the absence of government intervention.
Examples of national pure public goods include national defense, law enforcement, basic research, public infrastructure (such as roads and bridges), and environmental protection. These goods are essential for the overall well-being and development of a nation, and their provision is considered a responsibility of the government to ensure the collective welfare of its citizens.