Path selection of local public goods negative externality and internalization
Jiao Li-min
Abstract
Jiao Li-min
Abstract
The basic function of local public goods is to satisfy the demand and the effectiveness of the region public.However,exist,it is difficult to achieve the optimal level of effectiveness due to the negative externalities.The government malfunctions,the asymmetrical decision information as well as official's achievements orientation are the important reasons which make the local public product form negative externality.The article proposes some measures to promote local public goods to internalize negative externalities.
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The basic function of local public goods is to satisfy the demand and the effectiveness of the region public.However,exist,it is difficult to achieve the optimal level of effectiveness due to the negative externalities.The government malfunctions,the asymmetrical decision information as well as official's achievements orientation are the important reasons which make the local public product form negative externality.The article proposes some measures to promote local public goods to internalize negative externalities.
Key concepts: Externality, Public good, Microeconomics, Product (mathematics), Economics, Selection (genetic algorithm), Local government, Public economics