An 'Existence Proof' of Public Goods

17 Pages Posted: 25 May 2017 Last revised: 16 Aug 2017

See all articles by Ash Navabi

Ash Navabi

George Mason University, Students

Date Written: March 15, 2017

Abstract

It is often asserted that public goods either do not ‘exist’, or that goods exist on some kind of vague spectrum between “purely public” and “purely private” goods. This is because of a conceptual muddling between public goods and private goods. I present a new conceptual framework for distinguishing between public goods and private goods, preserving the original definitions but clarifying why a public good is fundamentally different than a private good. Namely, I introduce the concept of a mass function, and the import the Law of Conservation of Mass from physics, to demonstrate that a public good must have zero mass. In other words, public goods are immaterial. Thus, not only do pure public goods ‘exist’ (in the sense that they are a distinct concept with a real-world analog), but are fairly easy to identify. I then discuss why, under this new understanding, the standard treatments of public goods are misguided—specifically, how public goods can be and often are provided without government intervention.

Keywords: public goods, private goods, econophysics, reification

JEL Classification: H410, Z100, Z180

Suggested Citation

Navabi, Ash, An 'Existence Proof' of Public Goods (March 15, 2017). GMU Working Paper in Economics. Available at SSRN: https://ssrn.com/abstract=2972770 or http://dx.doi.org/10.2139/ssrn.2972770

Ash Navabi (Contact Author)

George Mason University, Students ( email )

Fairfax, VA
United States

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