Analysis on Government Efficiency and Its Conditions in the Provision of Public Goods
Lu Hong
Abstract
Lu Hong
Abstract
classical economic theory believes that,in any collective group,there is individual behavior of free rider and the resulted outcome of nothing for free riding,because of the shared burden of public goods costs.The paper says that free riding is a kind of rational economic hypothesis,but the issue should not necessarily be dealt with by government.Theoretically speaking,there are explanations on the efficiency of provision of public goods,and the paper makes a study on this issue.
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classical economic theory believes that,in any collective group,there is individual behavior of free rider and the resulted outcome of nothing for free riding,because of the shared burden of public goods costs.The paper says that free riding is a kind of rational economic hypothesis,but the issue should not necessarily be dealt with by government.Theoretically speaking,there are explanations on the efficiency of provision of public goods,and the paper makes a study on this issue.
Key concepts: Public good, Free riding, Free rider problem, Government (linguistics), Outcome (game theory), Economics, Nothing, Public economics