曼昆微观经济学第五版 第十一章 课文英文PPT.ppt

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1、Public Goods and Common ResourcesChapter 11Copyright 2001 by Harcourt,Inc.Allrightsreserved.Requestsforpermissiontomakecopiesofanypartoftheworkshouldbemailedto:PermissionsDepartment,HarcourtCollegePublishers,6277SeaHarborDrive,Orlando,Florida32887-6777.Harcourt,Inc.itemsandderiveditemscopyright2001b

2、yHarcourt,Inc.“The best things in life are free.”Free goods provide a special challenge for economic analysisMost goods in our economy are allocated in marketsfor these goods,prices are the signals that guide the decisions of buyers and sellers.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcour

3、t,Inc.“The best things in life are free.”When goods are available free of charge,the market forces that normally allocate resources in our economy are absent.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.“The best things in life are free.”When a good does not have a price attached to

4、it,private markets cannot ensure that the good is produced and consumed in the proper amounts.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.“The best things in life are free.”In such cases,government policy can potentially remedy the market failure that results,and raise economic well

5、-being.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.The Different Kinds of GoodsWhen thinking about the various goods in the economy,it is useful to group them according to two characteristics:u Is the good excludable?u Is the good rival?Harcourt,Inc.itemsandderiveditemscopyright2001

6、byHarcourt,Inc.The Different Kinds of GoodsuExcludabilityuPeople can be prevented from enjoying the good.uLaws recognize and enforce private property rights.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.The Different Kinds of Goodsu RivalnessuOne persons use of the good diminishes ano

7、ther persons enjoyment of it.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Four Types of GoodsuPrivate GoodsuPublic GoodsuCommon ResourcesuNatural MonopoliesHarcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Types of GoodsuPrivate GoodsuAre both excludable and rival.uPublic

8、GoodsuAre neither excludable nor rival.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Types of GoodsuCommon ResourcesuAre rival but not excludable.uNatural MonopoliesuAre excludable but not rival.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Types of GoodsRival?Yes NoYes

9、 Private Goods Ice-cream cones Clothing Congested toll roads Natural Monopolies Fire protection Cable TV Uncongested toll roads No Common Resources Fish in the ocean The environment Congested nontoll roads Public Goods National defense Knowledge Uncongested nontoll roads Excludable?Harcourt,Inc.item

10、sandderiveditemscopyright2001byHarcourt,Inc.The Free-Rider ProblemA free-rider is a person who receives the benefit of a good but avoids paying for it.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.The Free-Rider ProblemuSince people cannot be excluded from enjoying the benefits of a p

11、ublic good,individuals may withhold paying for the good hoping that others will pay for it.uThe free-rider problem prevents private markets from supplying public goods.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Solving the Free-Rider ProblemuThe government can decide to provide the

12、 public good if the total benefits exceed the costs.uThe government can make everyone better off by providing the public good and paying for it with tax revenue.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Some Important Public GoodsuNational DefenseuBasic ResearchuPrograms to Fight

13、PovertyHarcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Are Lighthouses Public Goods?Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Cost-Benefit AnalysisuIn order to decide whether to provide a public good or not,the total benefits of all those who use the good must be comp

14、ared to the costs of providing and maintaining the public good.uCost benefit analysis estimates the total costs and benefits of a good to society as a whole.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Cost-Benefit AnalysisuA cost-benefit analysis would be used to estimate the total

15、costs and benefits of the project to society as a whole.uIt is difficult to do because of the absence of prices needed to estimate social benefits and resource costs.uThe value of life,the consumers time,and aesthetics are difficult to assess.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,

16、Inc.Common ResourcesCommon resources,like public goods,are not excludable.They are available free of charge to anyone who wishes to use them.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Common ResourcesCommon resources are rival goods because one persons use of the common resource re

17、duces other peoples use.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Tragedy of the CommonsThe Tragedy of the Commons is a story with a general lesson:When one person uses a common resource,he or she diminishes another persons enjoyment of it.uCommon resources tend to be used excessi

18、vely when individuals are not charged for their usage.uThis creates a negative externality.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Examples of Common ResourcesuClean air and wateruOil poolsuCongested roadsuFish,whales,and other wildlifeHarcourt,Inc.itemsandderiveditemscopyright2

19、001byHarcourt,Inc.Why Isnt the Cow Extinct?PrivateOwnership and the Profit Motive!Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Importance of Property RightsThe market fails to allocate resources efficiently when property rights are not well-established(i.e.some item of value does not

20、 have an owner with the legal authority to control it).Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.Importance of Property RightsWhen the absence of property rights causes a market failure,the government can potentially solve the problem.Harcourt,Inc.itemsandderiveditemscopyright2001

21、byHarcourt,Inc.SummaryuGoods differ in whether they are excludable and whether they are rival.uA good is excludable if it is possible to prevent someone from using it.uA good is rival if one persons enjoyment of the good prevents other people from enjoying the same unit of the good.Harcourt,Inc.item

22、sandderiveditemscopyright2001byHarcourt,Inc.SummaryuPublic goods are neither rival nor excludable.uBecause people are not charged for their use of public goods,they have an incentive to free ride when the good is provided privately.uGovernments provide public goods,making quantity decisions based up

23、on cost-benefit analysis.Harcourt,Inc.itemsandderiveditemscopyright2001byHarcourt,Inc.SummaryuCommon resources are rival but not excludable.uBecause people are not charged for their use of common resources,they tend to use them excessively.uGovernments tend to try to limit the use of common resources.