Question

Define “public goods” in your own words; include 3 references and provide an example.

Answer 1

Answer:
According to Gravelle and Rees: The defining public good is those things, the consumption of them by one person does not really or potentially decrease the available quantity for usage for other individuals.
Paul A. Samuelson,an economist, developed this theory in 1954,paper The pure Theory of public expenditure.
According to him:
Goods which all use in common in that manner that consumption by individuals of these goods does not reduce it.
V. Ostrom and E. Ostrom also made modifications to the goods classification to detect basic differences that influence individuals.
Examples of public goods are:
•   Roads and Highways
•   Army and police services.
•   Environmental goods.
•   Inventions.
•   Air
•   Water supply
•   Light house.
•   Public transport etc.