Difference between revisions of "Merit good"
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(New page: A merit good is provided by government to meet a minimum demand and fill a perceived void in the willingness of private companies to provide the good or service. Examples are public hospi...) |
(No that's not quite right and based on a bit of a misconception of what a merit good is.) |
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| − | + | Goods that some elite deems so desirable that the government intervenes, even though markets could satisfy consumer wants efficiently. However, if left to the individuals ability to pay, these services would not be produced in sufficient quantities. This would be undesirable for a society that benefits from a well educated, healthy and housed population. The state is concerned with maximising the consumption of certain goods which it deems to be desirable; goods and services where the social benefits exceed the private benefits. Examples are public hospitals, libraries, parks and municipal golf courses. | |
Revision as of 21:11, April 22, 2007
Goods that some elite deems so desirable that the government intervenes, even though markets could satisfy consumer wants efficiently. However, if left to the individuals ability to pay, these services would not be produced in sufficient quantities. This would be undesirable for a society that benefits from a well educated, healthy and housed population. The state is concerned with maximising the consumption of certain goods which it deems to be desirable; goods and services where the social benefits exceed the private benefits. Examples are public hospitals, libraries, parks and municipal golf courses.