Are there any public goods

public goods

public goods are basically vused by everyone. This type of goods, which are also referred to as collective goods, is open to the general public and is primarily characterized by two characteristics, which are defined in more detail below.

Definition: what are public goods?

Under the term public goods is understood by economic From the point of view of all goods and services that are offered by the state. In addition, it is a prerequisite that the public goods are characterized by non-excludability and non-rivalry. But what does that mean and what are, for example, unclean public goods?

Specifics of public goods

In contrast to other goods, there are several special features of public goods. For example, the individual cannot be excluded from the use of public goods, since here - as already mentioned - the non-excludability applies. So everyone can use public goods - nobody can determine who is allowed to use them. In addition, the use of public goods is usually free of charge. The following examples will explain the facts even more plausibly.

Another peculiarity is that there must be a non-rivalry in the case of collective goods. This means that a public good must be able to be used by several people at the same time. The use of the good by person A must not be impaired by the previous use of the good by person B.

Examples - public goods:

1. Street lighting
A very popular example of collective goods is street lighting, which is available in almost every city, at least in Germany. Anyone can benefit from street lighting by simply walking through the illuminated street in the dark. Nobody can stop someone and nobody has to pay anything for it.

2. National defense
In order for it not only to be safe in a country like Germany, but also to stay safe, high expenses have to be paid for national defense. This service is also free of charge for the individual. For example, anyone can call the police in an emergency.

3. Fireworks
Even fireworks that are not carried out by the state can, under certain circumstances, be a form of collective good. Why? Quite simple: if you want to organize a fireworks display for a friend's birthday (provided you have a permit) and collect 10 euros from each guest, it cannot be guaranteed that those who have not paid will not benefit. Even an outsider can enjoy the view of the fireworks free of charge, as the conditions of non-excludability and non-rivalry are given.

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The article "Public Goods" is in the category: Goods