Download - What is Public Good & Type of Public

8/10/2019 What is Public Good & Type of Public

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Presented By :

Kusumawati

Kazuhide Suzuki

Marinda Asih Ramadhaniah


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DEFINITION The preceding discussion of public goods is circular

government are defined a producers of publicgoods, and public goods are defined as the stuffgovernments produce.

Many economist (starting with Paul Samuelson)have tried to attach a more specific, technicaldefinition to the termpublic good.

The most common definition of public goods stress

two attributes that seem to characterize many ofthe good governments produce : Non-excludableand Non-rivalry


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Character of public goods

Non excludability

Non rivalry


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1 . Non Excludability

Non excludability is a character that cannotexclude those who do not pay from consumption.

In other words, a non excludable good can be

consumed without payment. Those who consume non excludable goods without

payment are called free-riders

excludable: fish tacos, dial-up internet servicenot excludable: firework display,

FM radio signals,

national defense,

http://www.tutor2u.net/blog/index.php/economics/comments/revision-presentation-public-goods


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2. Non rivalry

Non rivalry is a character that people can consumesimultaneously.

It means that consumption of someone does not

diminish consumption of other people. Marginal cost of such good is zero

rival: fish tacos, gudeg

not rival:Street lighting

information goods such as MP3 file andmovies

http://www.tutor2u.net/blog/index.php/economics/comments/revision-presentation-public-goods


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Type of Public Good

Privategood

Commongood

Clubgood

Pure

publicgood

Non excludableExcludable

Rivalrous

Non rivalrous


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1. Pure Public Goods A pure public good is a good which is

both non-excludable and non-rivalous.

ex.) national defense

National defense service is consumed by

foreign students who do not pay tax for it.non-excludable

Privategood

Commongood

Clubgood

Purepublicgood

Students of UGM consume national defense service, which is

also consumed by students of UNY and others. non-rival.

Pure public goods are also known as collective consumptiongoods: Sewage and Waste Disposal System, National Rail Safety

System, Street Lighting, Firework Display, Flood Defense System


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2. Club Goods

A club good is a good which isexcludable but non rivalrous.

ex.) cable television

Those who do not pay for theservice cannot watch cabletelevision programs

excludable

Privategood

Commongood

Clubgood

Purepublicgood

When one student pays for the service, then

other students gather at his house and they can

watch the same program together without

additional payment.non rivalrous


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3. Common Goods

A common good is a good whichis non excludable but rivalrous.

ex.)natural recourses

Like a Gold Rush in the US,natural recourses cannot excludeits mining from free riders.non excludable

When someone mines natural

recourses, the rest of theamount diminishes. rivalrous

Privategood

Commongood

Clubgood

Purepublicgood


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CONCLUSION

1. Public goods is good which is both non-

excludable and non-rivalous. The example is

national defense2. There are 3 types of public good : Pure Public

Good, Club Good, and Common Good

3. Impure Public Good : goods that satisfy the two

public good conditions to some extent, but notfully (non-rival and excludable/Club Good or rival

and non-excludable/Common Good) .


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THANK YOU