Assertions of market failure are usually based on Paul Samuelson's theory of public goods and externalities. This book both develops that theory and challenges the conclusion of many economists and policy-makers that market failures cannot be corrected by market forces. The volume includes major case studies of private provision of public goods. Among the goods considered are lighthouse services, education, municipal services, and environmental conservation.
Table of Contents
Introduction -- 1. Public Goods and Externalities: Old and New Perspectives /Tyler Cowen -- Section I The Theory of Market Failure -- 2. The Pure Theory of Public Expenditure /Paul A. Samuelson -- 3. The Anatomy of Market Failure /Francis M. Bator -- Section II Developments in the Theory of Markets -- 4. Equal Access vs. Selective Access: A Critique of Public Goods Theory /Kenneth D. Goldin -- 5. Free Ride, Free Revelation, or Golden Rule? /Earl R. Brubaker -- 6. The Private Production of Public Goods /Harold Demsetz -- 7. The Exchange and Enforcement of Property Rights /Harold Demsetz -- 8. State-of-Nature Theory and the Rise of Social Institutions /Andrew Schotter -- 9. A Pure Theory of Local Expenditures /Charles M. Tiebout -- 10. An Economic Theory of Clubs /James M. Buchanan -- 11. The Problem of Externality /Carl J. Dahlman -- Section III Case Studies -- 12. The Problem of Cooperation /Robert Axelrod -- 13. The Lighthouse in Economics /Ronald H. Coase -- 14. The Fable of the Bees: An Economic Investigation /Steven N. S. Cheung -- 15. Fire Protection /Robert W. Poole, Jr. -- 16. Leisure and Recreational Services /Robert W. Poole, Jr. -- 17. Private Solutions to Conservation Problems /Robert J. Smith -- 18. The Private Supply of Education: Some Historical Evidence /Jack High and Jerome Ellig -- Contributors.