Search results

The purpose of this paper is to analyse the role of transfers as a means to overcome inefficiencies in the provision of impure public goods. The paper employs the example of international conditional transfers targeted to overcome suboptimal low climate protection efforts by influencing the abatement technology choice of countries.

The paper applies the Lancastrian characteristics approach and conduct numerical simulations for divergent degrees of substitutability between different characteristics. The paper takes into account climate‐protection benefits (global pollution reduction) as well as co‐benefits (local pollution reduction) of climate protection activities.

The analysis shows that individual country solution can be improved upon by making transfers from the richer countries to the poorer ones, if the latter have a lower relative preference for the global public goods (global pollution reduction) than the former. The magnitudes of such transfers will depend on the relative benefits of the global and local pollutants in the two countries. The authors also investigated the dependency of the potential for transfers on the degree of complementarity between global and local pollution characteristics. With a “Cobb Douglas” type of function used here the elasticity of substitution between the two is of course one. With a zero degree of substitutability the adjustment to a lower level of the global public good in fact starts to happen at a lower per capita income level. The scope for conditional transfers is still there, although the gains can be slightly smaller than when adjustment on the “global pollution characteristic – local pollution characteristic” margin is possible.

This paper is a contribution to the literature on impure public goods. In particular, the authors examine the role of international transfers in obtaining an efficient global allocation of resources in the presence of such public goods. To date the analysis of impure public goods has not examined the case of a continuum of technologies where an efficient solution requires conditional transfers, i.e. payments from one country to another to undertake a different supply of global and local public goods than the second country would wish to undertake.

The purpose of this paper is to provide a theoretical framework for the assessment of subjective value of public goods. Public goods are not traded, so they do not have market prices, even if they may be of great importance for the well-being of citizens (e.g. green spaces, urban air). A procedure used to estimate the economic value of a public good is the contingent evaluation method: people are asked to state how much they are willing to pay to preserve or restore a public good. Many studies report that the subjective evaluation of public goods is affected by factors that, according to standard economics, should be irrelevant, such as the manipulation of frame and prime. On the other hand, factors that should be relevant, such as the magnitude of the expected benefit, are neglected. It appears that the evaluation of a public good cannot be reduced to a mere cost–benefit tradeoff evaluation. On the contrary, it seems that the subjective value of a public good is constructed. The authors argue that to accurately predict and describe how people valuate public goods, it is fundamental to study how people construct the associated mental representation.

This paper takes into account the cognitive and emotional aspects of the evaluation of public goods.

Subjective valuation of public goods is affected by irrelevant factors and is not affected by relevant factors.

This paper provides an accurate description and prediction of how people evaluate public goods.

The social implications of this paper include a better evaluation of public policies.

This paper is an original psychological perspective on the evaluation of public goods.

Public heritage facilities – national parks, art galleries, museums and so on – are now required by professional accounting standards in Australia to be valued and included in government general purpose financial statements as assets. This study challenges the appropriateness of such an accounting treatment in relation to the SAC4 definition of assets and the purported usefulness of the information. Instead it is argued that these facilities are public goods, and that commercial accounting principles should not be applied to them. The article explains the nature and significance of public goods and how they differ from private goods. It explains why commercial accounting principles are irrelevant for public heritage facilities because their objectives are social rather than financial and why commercial valuations are irrelevant and unreliable if applied to them. Finally, it is contended that the facilities are assets held in trust for the nation by government and hence should not be included in its general purpose financial reports.

The purpose of this paper is to present exploration of themes that interconnect six studies in environmentally and socially sustainable human development.

The article presents an overview of the papers included in this special issue.

As humanity threatens to undermine its habitat, a social economics returns to core concepts and themes that became expunged from neoclassical economics: serious examination of persons, seen as more than given points of desire; a broadened perspective on types of good, including a non‐neoclassical conception of public goods as publicly deliberated priority goods that are not well managed through free markets and “common goods” as shared bases vital for everyone; study of what commodities and goods do to and for people; a central role for public reasoning about which are public priority goods, rather than using only a technical definition of a public good; an acceptance of notions of ethical responsibility and responsibilities concerning the provision and maintenance of public priority goods determined through public reasoning; and attention to institutional formats for such deliberation. Amongst the greatest of public priority “goods” are the concepts of common good and responsibility.

The findings reinforce the agenda of socio‐economics for central attention to the mutual conditioning of economy, society, polity, and environment, including analysis of the sociocultural formation of economic actors and of ideas of “common good”.

Cross‐fertilization of theorization with cases from Costa Rica, Kenya, Nepal, Thailand, Rwanda, sub‐Saharan Africa and global arenas.

The purpose of this paper is to analyze the formation mechanism of the “One Case One Meeting” system in rural China, which is an institutional arrangement to voluntarily provide public goods to villagers. The survey data are used to test the applicability of the “One Case One Meeting” system.

Applying the Nash equilibrium and the nested game models, this paper analyzes the formation mechanism of the “One Case One Meeting” system. Based on the survey data, the zero‐inflated Poisson regression model (ZIP) and the zero‐inflated negative binomial regression model (ZINB) are applied to examine the impacts of the “One Case One Meeting” system on village‐level public investment.

The results suggest that the “One Case One Meeting” system can be executed more effectively, provided that the following two conditions are both satisfied: first, acquaintance community; and second, election participants have the freedom to express their real opinions. The empirical results from the ZINB model show that the system has a significant positive impact on village‐level public investment in production while the results from the ZIP model show that the system does not significantly affect village‐level public investment in consumption.

Based on the findings, the paper suggests that villages adopt the “One Case One Meeting” system for issues related to public investment in production, but does not suggest this model for issues related to public investment in consumption. In addition, it is necessary to enhance democratic consciousness in farmers' education and, in order to create more channels for village public investment in production, it is necessary to regulate the election system.

The purpose of this paper is to evaluate the efficiency of public goods provision in Wenchuan earthquake-stricken rural areas. The study was undertaken in August and September 2012 by the field survey of 24 villages.

This paper, by applying the methods of analytic hierarchy process and fuzzy comprehensive evaluation, aims to evaluate the efficiency by means of villagers’ satisfaction, which is designed in the idea of combining overall goal-classifications and specific indicators, including 7 classifications and a total of 36 specific indicators.

Based on maximum membership principle by the fuzzy comprehensive evaluation, the calculation results in 0.4485862 as a “general” level of the evaluation membership of efficiency in the post-quake public goods provision, and 3.0634837 as overall comprehensive score, a level lower than 3.5.

The efficiency by means of villagers’ evaluation is generally at a lower degree. Although the reconstruction has completed some high-quality infrastructure, schools, hospitals and houses, we still face more macroscopic and long-term problems of recovering and sustaining the post-quake communities in many fields.

It is more worthy to consider how to improve the efficiency of the reconstruction, especially in public goods and public services provision in the quake-stricken rural areas.

The purpose of this paper is to analyze economically several versions of the philosophical common good in order to contribute to the search for a viable conceptualization of the common good.

The paper presents an economic analysis of the common good by examining the extent to which eight different versions of the philosophical concept possess the consumption characteristics of excludability and rivalry – and thus how each version may be classified as an economic good: private, public, common, or club.

One of the examined versions of the philosophical common good is an economic common good; three versions are club goods; and four versions are public goods. Only those versions of the common good that are classifiable as public goods merit consideration as adequate conceptualizations in political and philosophical thought. In assessing the admissible versions the authors conclude that a viable conceptualization of the common good may simply be the maintenance of a peaceful social order that allows people to pursue their individual and collective goals in community.

The paper shows that an analysis of the philosophical common good using the economic criteria of excludability and rivalry can contribute to common good discourse.

This paper examines the economic forces which may lead to government-assisted or -facilitated bid-rigging (kansei-dango) in public procurement in Japan, and considers their implications. A public official may often worry about situations where his/her procurement project will not be successfully implemented. Based on a simplified theoretical treatment and on case studies of kansei-dango, it is argued that the desire to avert the risk of unsuccessful procurement resulting from the "experience goods" status of procured goods and/or services may be one reason for bid-rigging. Based on this understanding of kansei-dango, we discuss some implications for policies to restrain this type of corruption.

In recent years, accrual accounting has become increasingly popular in many governments. Yet some questions remain unresolved. Previous literature questioned whether all governmental assets should be capitalized. Whereas those studies mostly focussed separately on a limited number of assets, such as infrastructure, military assets or heritage assets, the purpose of this paper is to expand these views by taking a holistic approach to their treatment.

The paper is based on a literature review combined with archival data, being the IPSAS (International Public Sector Accounting Standards).

The analysis distinguishes between the business and government sectors of the economy and argues that business accounting for assets cannot be applied to the public sector without significant modification. Secondly, within the public sector, it is argued that “businesslike assets” (such as normal buildings and equipment) should be distinguished from “specific governmental assets” (such as art galleries), where the latter should be reported off balance sheet as community assets held in trust by governments for community enjoyment.

The current paper presents a solution for recognizing capital assets in different situations.

The paper reveals some basic differences in points of view between the governmental dimension versus a businesslike dimension in considering capital assets.

Emil Sax was an Austrian economist both in origin and theoretical background. He is often cited as one of the founders of modern theoretical public economics. An extensive account of his main ideas is given, along with some of the problems left unresolved in his theory.