Theory Of Public Goods Research Articles

SNA Under the framework of global public goods

<abstract> <p>ISWGN (Inter-Secretariat Working Group on National Accounts) is revising 2008 SNA and is expected to publish the latest version of SNA in 2025. In this context, this paper observes SNA (System of National Accounts) from a new perspective of global public goods and further understands the public goods attributes of national accounts. The global public good is developed from the theory of public goods. According to its definition, classification, and supply rule, SNA is considered a global public good in essence. In terms of characteristics, SNA belongs to means-oriented and best shot supply-oriented global public goods. It has network effect and belongs to network global public goods. And it is also global institutional knowledge, belonging to knowledge-based global public goods. Although SNA serves as a global standard of national accounts, it is not mandatory for consumption. As a global public good, SNA can enhance a country's statistical ability, avoid and reduce the cost of developing the system of national accounts, and reduce transaction costs. At the same time, SNA has the problem of underprovision and underuse, which requires global cooperation in the revision process of SNA. The evolution of SNA demand determines the evolution of SNA supply. Therefore, even if SNA is a global public good, it does not mean that countries should copy SNA, but need to "localize" SNA and transform it from a global public good to a national or regional public good.</p> </abstract>

PUBLIC GOOD THEORY: A THEORETICAL JUSTIFICATION FOR PERMISSIVE LICENSE TO USE AND RE-USE ORPHAN WORKS

This paper explores the adoption of Paul Samuelson’s Public Good Theory as a theoretical justification for a permissive licensing scheme enabling the use, and re-use orphan works in Malaysia. Orphan works are copyright-protected works with unlocatable or unidentified right holders, and are currently on the rise due to the proliferation of unregistered, anonymous, and abandoned copyright works. The literature denotes the challenges arising from the difficulty faced by potential users in obtaining the permission for creative and innovative use of orphan works as required under Copyright law. Such challenges impede the potential use and re-use of orphan works for the purpose of knowledge dissemination, progress in the arts, preservation and digitisation activities. This paper contributes to the current body of knowledge by canvassing two important issues. The first issue focuses on the challenges faced by potential users to use and re-use orphan works in Malaysia. The second is Paul Samuelson’s Public Good as a theoretical justification for permissive license to use and re-use orphan works. It is anticipated that a legislative reform grounded on Paul Samuelson’s Public Good Theory will spur grassroots innovations, creativity and entrepreneurialism among members of the public. The permissive licensing scheme supports global calls for legislative reform of copyright law to facilitate the use and reuse of orphan works.

Reassessing the public goods theory of alliances

The public goods theory of alliances exerts substantial influence on scholarship and policy, especially through its claim that small alliance participants free-ride on larger partners. Prior statistical tests of free-riding suffer from model specification and generalizability problems, however, so there is little reliable and general evidence about this prediction. In this study, I address those limitations with a new test of the free-riding hypothesis. Using data on 204 alliances from 1919 to 2007, I examine how often states with a small share of total GDP in an alliance decrease military spending while states with a large share of allied GDP increase military spending. I find little evidence to support this expression of the free-riding hypothesis. This implies that free-riding based on economic weight is unusual in alliance politics, which may be due to limits on alliance security as a public good or bargaining between alliance members.

Public Goods and the Origins of Equilibrium Democracy

Research on the relationship between neoliberalism and democracy has mostly overlooked the important theoretical contributions of public goods theorists in extending market mechanisms beyond the economy. Yet, many aspects associated with the rise of neoliberalism would have been unimaginable without these economists’ contributions to the development of a new variety of liberal democracy, based on the model of the market. The separation of provision and production, the introduction of market-like competition in public services, and the use of performance incentives are inexplicable without reference to public goods theorists’ reinvention of politics as the demand for and supply of publicly provided goods and services. Focusing on the contributions of Paul Samuelson, Charles Tiebout, and Vincent Ostrom rather than the usual suspects associated with the Mont Pèlerin Society, the article argues that public goods theory represents a positive vision of the market-oriented democratic state that most scholars of neoliberalism have overlooked. This positive vision of marketized provision of public goods and services represents a new model of liberal democracy rather than the end of it.

Problems and Countermeasures of Bike-Sharing System in China Based on the theory of Public Goods

Under the new normal of China’s economic development, bike-sharing, a new product of the “Internet +” era, opens the door to a novel lifestyle for the society, and is in the stage of rapid development. Nevertheless, with the explosive growth of the number of bicycles, some new problems gradually come out, such as disorderly parking, serious damage and waste of resources, which in turn restrict its further development. Based on the theory of public goods, this article studies the quasi-public goods attributes and problems of bike-sharing, as well as provides feasible measures for its long-term development, so as to realize the co-governance and sharing among enterprises, consumers and government.

Endogenous Shared Punishment Model in Threshold Public Goods Games

Population growth and greater human well-being imply increased use of scarce resources, which makes innovative proposals for fair redistribution policies necessary. The utilisation of common-pool resources (CPRs) offers an economising solution to this problem; however, addressing the complex issue of harmonising the participants’ interests is challenging. The use of CPRs has been theoretically discussed for decades and is addressed by theory of public goods (PGs) provision. Surprisingly, experimental tests of this theory have observed systematic deviations from the theoretical conclusions. Economists have applied agent-based methods to resolve this puzzle. We follow this approach and propose an agent-based model that innovatively employs voting on the punishment of free/cheap riders. The voting participants simultaneously determine the strictness of the punishment meted out to free/cheap riders and the cost burden of this punishment system. The proposed endogenous shared punishment model works within the threshold public goods game framework. Simulation results show that the presented method is more efficient than models with full or no punishment. Furthermore, the involvement of activists increases the likelihood of PGs provision. Introducing voting into PGs provision increases its efficiency and thus extends the set of available solutions to increase the efficiency of PGs provision.

Producing public goods in the EU: European integration processes in the fields of refugee protection and climate stability

ABSTRACT In recent years, the EU has experienced different integration ‘crises’ in its policy domains. Some policy fields such as the environment have been driven by an integration process of consensus among the Member States while others, such as migration and asylum policy, have not reached a high level of integration because of differences between the states. Although some scholars have attempted to identify the dynamics of integration processes in the EU through political theories such as neofunctionalism and intergovernmentalism, these theories may not be helpful to explain the lack of integration seen in the last several years in migration and asylum policy. To identify some of the dynamics of EU collective action and its influence on the European integration process (or the reverse), this paper proposes to analyse EU environmental policy and EU refugee protection policy through the lens of public goods theory. Analysis of the production process of public goods, in this case, as refugee protection and climate stability, gives interesting insight into the different levels of integration in both policy domains.

International Cooperation of the Polish Police and the Theory of Public Goods

The article discusses the involvement of the Polish police in international police cooperation in the context of the theory of public goods. The aim was to confirm the hypothesis that in today’s reality, cooperation between state authorities around the world is necessary to ensure security, which is regarded as a public good. An example of such involvement are actions taken by the Polish police. The article presents the assumptions of the theory of public goods and the notion of security as a public good. It is followed by an analysis of how the Polish police were involved in international cooperation from the beginning of the 1990s until today. The article presents peacekeeping missions of the UN, EU, OSCE and WEU in which the Polish police participated or are still participating. Then the author presents local, regional and global initiatives in which the police are involved at an operational and non-operational level, including activities coordinated by the EU, international police organizations and networks of liaison officers, as well as activities which are a part of bilateral cooperation. The presented overview of international cooperation undertaken by the police made it possible to confirm the initial hypothesis.

The Dialectics of Disasters and the Theory of Public Finance in the Digital Age

Disasters are caused by natural forces or by humans. Disasters are sudden and unplanned. It is difficult to predict when, where, how and to whom they are going to happen. This study investigated eight news stories about disasters that occurred in Thailand and in other countries in 2011. The data was then analyzed and synthesized using Hegel’s Dialectics and the theory of public finance and public administration introduced by Richard Musgrave. The findings reveal that the eight disaster news stories can be explained with reference to an externality approach. Some aspects of the news stories are related to other theories such as the public goods theory in the case of the government budget in infrastructure rebuilding and repair or the public choice theory for a multi-organisation collaboration in providing information for disaster preparedness. It is found that 75% of the news stories employed a positive/ predictive approach using empirical evidence such as numerical data to support the report. Interestingly, a normative approach, which seeks to provide a framework of “what ought to be”, is rarely found in the analysis or suggestion section of the news story. Seven of the news stories (87.5%) use fiscal theory in the analysis. It is evident that disaster management is proved to be a mammoth task which cannot be handled by the citizens, the private sector, and the voluntary sector alone. The government, both central and local, takes main responsibility for disaster preparedness, response and recovery. Government expenditure and spending policy is used to reconstruct or repair the community infrastructure. In addition, cutting-edge technology in the digital age has been introduced in disaster response. For example, in Australia a drone is used to save people from drowning. It is noted that disaster victims shall seek speedy recovery from the effects of the disaster with a strong focus and determination by adhering to self-reliance and community resilience to prepare for inevitable future disasters.

Guangdong–Hong Kong–Macao Greater Bay Area public goods supply governance research based on data mining algorithms

Building the Guangdong–Hong Kong–Macao Greater Bay Area is conducive to promoting the high economic integration of Guangdong, Hong Kong and Macao, building a new open economic system, and carrying out dual exploration of politics and economy, which is of great strategic significance. Public governance is not only a substitute for the traditional public administration paradigm, but also a product of interdisciplinary research and multidisciplinary development of social science. Its greatest feature is that it is a transcendence of traditional government domination theory. Close integration of economic decentralization and vertical political management system is the core connotation of Chinese-style decentralization. In terms of fiscal system, China is among the countries with the highest degree of decentralization in the world. Starting from the concept of public goods and based on data mining algorithm, this paper expounds the basic theory of public goods supply mode and the factors affecting the supply of public goods. On the basis of clear theory, this paper probes into the characteristics and existing problems of the traditional supply mode of public goods in China, which has positive significance for improving the quantity and quality of the supply of public goods in Guangdong–Hong Kong–Macao Greater Bay Area.

Nędza koncepcji globalnych dóbr publicznych

The Poverty of the Concept of Global Public Goods
 The concept of global public goods (GPG) reflects an attempt to replicate a microeconomic theory of public goods to the domain of international relations (IR). According to economic definition of public goods, which have two properties – non-rivalry and non-exclusivity, pure GPG can be consumed universally and simultaneously by (ideally) all global citizens; at the same time, no society can be excluded from its consumption. Classic examples of GPG include earth atmosphere, knowledge or financial stability. Notwithstanding the fact that pure public goods are incredibly rare, the very definition of GPG is highly problematic. This article is intended as an intervention in a critical debate about the true meaning of the GPGs. Its authors argue that to date the academic community has failed to agree on an intersubjective understanding of GPG. They also claim that the current functioning of the concept in the discourse within IR is “poor”, i.e. it is insufficiently rigorous, blurred and methodologically inconsistent. On the flip side, the way GPG has found its way to IR reflects some of the main problems that the field has been recently immersed in.

Theories of Financial Inclusion

This article presents several theories of financial inclusion. Financial inclusion is defined as the availability of, and the ease of access to, basic formal financial services to all members of the population. Financial inclusion means that individuals and businesses have access to useful and affordable formal financial services that meet their needs in a responsible and sustainable way. Financial inclusion practices vary from country to country, and there is need to identify the underlying principles that explain the observed variation in financial inclusion practices. These set of principles are called theories. Financial inclusion theories are explanations for observed financial inclusion practices. This study shows that the ideas and perspectives on financial inclusion can be grouped into theories to facilitate meaningful discussions in the literature. The identified theories of financial inclusion are the public good theory, dissatisfaction theory, vulnerable group theory, systems theory, community echelon theory, public service theory, special agent theory, collaborative intervention theory, financial literacy theory, private money theory, public money theory and the intervention fund theory. The financial inclusion theories identified in this paper are useful to researchers, academics, policy makers and practitioners. The resulting contribution to theory development is useful to the problem-solving process in the global financial inclusion agenda.

Знання та технології як суспільні блага

The features of knowledge and technology as factors of modern economic development have been analyzed, as well as their essential characteristics in the public goods theory. It has been proven that knowledge and the results of fundamental scientific research are characterized by the properties of non-competitiveness and indivisibility in consumption, as their consumption by one subject does not reduce their consumption by others. It is substantiated that knowledge of applied nature and the results of applied research lose the properties of public goods due to the recording of intellectual property rights. The expenditure budget on scientific research in some countries has been analyzed. It has been found out that constant reduction of the R&D expenditures share in the GDP and significant reduction of fundamental research funding preserves Ukraine’s scientific and technological lag behind the world’s leading countries and makes rapid technological renewal of the domestic economy impossible. It has been found out that economic entities receive the innovation rent at the first lifecycle phase of the technology, given the existence of a mechanism for patenting research and development results and the monopoly rights of the owners of new technologies for their exclusive use. However, the monopoly on new technologies is not an absolute one due to the threat of information leakage in the process of interaction with potential buyers and copying or imitation of new products or new processes at the stage of getting them into actual practical use. It has also been proven that at the accelerated diffusion phase, such technologies acquire the features of a mixed public good.

THE CONTRIBUTION OF THE EU TO THE IMPLEMENTATION OF THE GLOBAL COMPACTS: LEGAL CERTAINTY FOR PEOPLE ON THE MOVE AS A GLOBAL PUBLIC GOOD

This work aims to analyze the role of the EU and its Member States in implementing the UN Global Compacts from a specific approach: the theory of global public goods. In particular, it aims to explore the incentives EU and its Member States would have for agreeing on a European regime providing safe and legal pathways for migrants and people in need of international protection heading to the European territory. Although a variety of international instruments contain both the right to leave any country, including one’s own country, and the right to seek international protection, up to now the International Community has failed in its attempt of providing legal certainty for people on the move. This article considersthat a global public good approach would fuel the indispensable political consensus to do so.

A Brief Theory of Taxation and Framework Public Goods

The literature on the question of how best to distribute the burden of taxation is technical and vast. However, in order for there to be a tax burden to distribute, there must first be a relatively stable social order that establishes, among other things, property rights. But the establishing of property rights is not costless; some revenue must have already been collected. How does one evaluate the distributive implications of a system of revenue collection that is a precondition for distributive questions? The dominant response to this question is to move beyond it by noting that, as a matter of fact, we are no longer in this liminal position and so we can sensibly discuss how best to distribute the tax burden. In this short chapter I argue for two basic points: First, as to the funding of the set of basic goods that make distributive questions possible, which I call “framework” goods, there is a strong argument that we should relax our demands for use of the “best” tax system. Second, there are likely more scenarios in which this insight about the financing of framework goods applies than one might think. Put simply, if we think a developing country would be well-justified in using a sub-optimal set of taxes to provide framework goods, and I think that we should, then it should also follow that a developed country would be well-justified in using a sub-optimal set of taxes to provide near-framework goods.

Practices of Defining the Notion of Social Entrepreneurship

The paper presents the results of an interdisciplinary comparative analysis of modern research practices concerning social entrepreneurship in Russian and foreign traditions in order to establish the specifics of defining the notion of social entrepreneurship in interdisciplinary discourse. The analytical basis of the study comprised the fundamental provisions and concepts of open innovation and human capital, the theory of public goods, the theoretical provisions concerning the structure and substance of social action, corporate social responsibility, the concept of uneven innovation activity, the principles of social partnership, social viability and complementarity. The research problems were solved using the methods of systems, structural and functional, institutional, comparative and content analyses. The selection of analysed papers was conducted in the databases of the analytical information platform Web of Science, the National Scientific Citation Database Russian Science Citation Index, the Scopus abstract base, the databases of academic networks ResearchGate, Academia.edu, etc. The paper indicates that Russian and foreign discourses address the problem of social entrepreneurship primarily in the context of economic, managerial, sociological, psychological and pedagogical research practices. It observes differentiation in the approaches to the conceptualisation and definition of the notion of social entrepreneurship under the applicable subject axiomatics and methodology and identifies the specifics of defining the notion of social entrepreneurship in interdisciplinary discourse. The research results make the foundation for further development of the methodology of definitions in the area of social entrepreneurship and serve to ensure consistency in the respective subject field and its relevance to the complex nature of social entrepreneurship as a phenomenon calling to be addressed from systemic and interdisciplinary positions.

AGRICULTURAL LAND IN THE CONTEXT OF THE THEORY OF PUBLIC GOODS – CRITICAL ANALYSIS

The main purpose of this article is to present a critical point of view towards the application of the public goods concept to land and agriculture. The basic legal regulations forming the agricultural system in Poland and the assessment of the legitimacy of state interventions on the land market in the light of the theory of the Austrian school of economics are discussed. According to the criteria used in the theory of public goods, agricultural land is a typical private good. On the other hand, the issue of goods integrally connected with land such as agricultural landscape and quality of the natural environment is debatable. The following arguments are against the state intervention: the lack of the possibility to objectively identify social needs, the political and redistributive nature of state intervention, the existence of market mechanisms for financing public goods.

LÉON WALRAS’S THEORY OF PUBLIC INTEREST GOODS: TOWARD AN ORGANIC VIEW OF THE STATE

The purpose of this essay is to analyze Léon Walras’s theory of public interest goods. For him, “services and products of public interest are theoretically those that interest men as members of the community or of the State emanating from the authority to establish social conditions, that is, from the satisfaction of needs that are the same and equal to all” ([1875, 1897a] 1992, EEPA, p. 187). In Walras’s mind, this definition meant that public interest goods could not be factored into the utility function, in sharp contrast with the standard approach in public goods theory. Walras did not imply that public interest goods were not useful, but he maintained instead that their utility was felt only by the community as a whole and not by the individual. Walras developed an anti-individualistic view of the State in which the collective interest was not reducible to the sum of private interests.

An Efficient Market Design for Electricity Networks With Strategic Users Possessing Local Information

We consider electricity wholesale markets with multiple strategic users that possess localized information about the electricity network and can be either producers or consumers. The objective is to design a mechanism that maximizes the social welfare (the sum of the users’ utilities) and has the following additional features. It satisfies the users’ informational constraints along with the constraints imposed by the lines’ thermal capacity limit and the network's physical laws (Kirchhoff's laws); furthermore, it is budget balanced, individually rational, and price efficient. Using ideas from the theory of local public goods and auctions, we construct a social welfare maximizing mechanism that possesses all of the above-mentioned features at equilibrium. We present an intuitive interpretation of the mechanism and discuss possible extensions of the model considered in this paper.

Local public goods: the essence and classification

The features of local public goods in the system of economic relations of society have been revealed. The essential features and main features of public goods offered by E. Lindal, A. Pigu, P. Samuelson and R. Musgrave have been analyzed. It has been shown that the theory of public goods is aimed at explaining the causes and consequences of existing contradictions between private and public interests in the production of public goods, and also contains suggestions on the mechanism for solving these contradictions. While determining the essence of local public goods the use of methodological approach has been proposed, through the use of which the construction of the economic category occurs through, firstly, the description of the most significant aspect of the phenomenon being investigated, secondly, an explanation of how exactly the deployment of the essence of the phenomenon within a certain, clearly certain content is being done and, thirdly, clarification of what the realization of this phenomenon results in inside the economic system. A generalization of the most common approaches to the disclosure of the essence, content, as well as the result of the realization of such economic phenomena as "public good" and "local public good" that are presented in the domestic economic literature is carried out. On the basis of the critical analysis of these definitions an author's definition of mentioned related categories is given. It is proposed to consider the local public good as a set of tangible and intangible objects and facilities designed to meet collective needs in certain territorial boundaries, which are characterized by a certain combination of properties of impossibility to exclude any subject from the process of consumption and individual choice of consumption, as well as by the absence of competitiveness between consumers. On the basis of the generalization of existing approaches in economic literature, the classification of local public goods is conducted. It is proposed to supplement this classification through the feature of institutional environment for the reproduction of these goods. Those local goods that are being reproduced through formal and informal rules are highlighted among the totality of local goods.