Public Goods: A Reflection

Abstract:     
The public goods can be seen as assets for which the positive externalities are extremely high compared to the benefits. The public goods generate social marginal benefits that outweigh private goods matching: this makes them socially desirable but not always capable of producing adequate profitability for the private entrepreneur. The existence of public goods leads to a selfish and opportunistic behavior, through the denial of real utility connected to the public good.

Number of Pages in PDF File: 6

Keywords: public goods, externality, State intervention, clubs

JEL Classification: D11, D69, D71, H11, H41

working papers series