Jump to content

Forced rider: Difference between revisions

From Wikipedia, the free encyclopedia
Content deleted Content added
Undid revision 573803464 by 98.243.110.86 (talk) Please find WP:RS secondary discussion of this if you believe it should be included in the artilcle
Citation bot (talk | contribs)
Altered date. Added publisher. | Use this bot. Report bugs. | Suggested by Abductive | [[Category:Public choice theory] | #UCB_Category 51/62
 
(57 intermediate revisions by 32 users not shown)
Line 1: Line 1:
{{Use American English|date = March 2019}}
A '''forced rider''' in economics refers a person who is required, by government or other collective, to share in the costs of goods which they feel do not benefit them. Such goods are typically [[non-excludable]].<ref>{{cite web|last=Cowan|first=Tyler|title=Concise Encyclopedia of Economics |url=http://www.econlib.org/library/Enc/PublicGoods.html |work=Public Goods |publisher=Library of Economics and Liberty |accessdate=27 February 2013}}</ref><ref>[http://books.google.com/books?id=4neLQXRNntkC&pg=PA111&dq=%22forced+riders%22&hl=en&sa=X&ei=gC0nUarxC9HOigK3oYHQAQ&ved=0CIIBEOgBMA4#v=onepage&q=%22forced%20riders%22&f=true Austrian Methodology: The Preferred Tax Type]</ref>
{{Short description|Someone required to pay for something they don't want}}
{{Use mdy dates|date = March 2019}}
{{notability|date=September 2021}}
A '''forced rider''' in economics is a person who is required, by public or private entities, to share in the costs of goods or services without desiring them or valuing them at their price.


==Theory==
==Theory==
=== Forced riders in taxation ===
Public goods are [[non-excludable]] and [[Rivalry (economics)|non-rivalrous]]. As a result, some people may benefit from a public good without helping to cover the costs of production. This is known as the "[[free rider problem]]".<ref>[http://books.google.com/books?id=yxNgXs3TkJYC The Encyclopedia of Libertarianism]</ref>{{page?|date=March 2013}}<ref>[http://books.google.com/bookshl=en&lr=&id=4XxbYM8UMtwC&oi=fnd&pg=PA63&dq=samuelson+preference+revelation&ots=6MOaOgtG0F&sig=d_h_e_chvtGOHpEFM51aAVEn7VU#v=onepage&q=samuelson%20preference%20revelation&f=true Providing Global Public Goods]{{broken link|date=March 2013}}</ref><ref>[http://bbs.cenet.org.cn/UploadImages/200642020355785817.pdf Multipart pricing of public goods] bbs.cenet.org.cn</ref>
The forced rider has been cited in various authors' views concerning taxation.
* [[Pacifists]] are required to pay for [[national security|national defense]].<ref name="mises" /><ref>{{cite web|author=Richard Cornes Todd Sandler |url=http://jtp.sagepub.com/content/6/3/369 |title=Are Public Goods Myths? |publisher=Jtp.sagepub.com |date=1994-07-01 |accessdate=2013-11-30}}</ref><ref>{{cite book|url=https://books.google.com/books?id=BdnxxpsF2pMC |title=Modern Principles of Economics |date= October 9, 2009|isbn=9781429202275 |accessdate=2013-11-30|last1=Cowen |first1=Tyler |last2=Tabarrok |first2=Alex |publisher=Macmillan }}</ref>{{page needed|date=March 2013}}
* [[Environmentalists]] may be required to pay for public works projects, such as dams, which they feel destroy natural habitats in ways they do not condone.<ref name="mises">{{cite web|url=http://mises.org/rothbard/myth.pdf |title=The Myth of Neutral Taxation |date= July 20, 2005|accessdate=2013-11-30}}</ref>
* Healthy and insured individuals being forced via an [[individual mandate]] to subsidize insurance for unhealthy and previously uninsured individuals. Previously uninsured individuals are now [[free riders]].{{cn|date=November 2013}}
* In many European countries, every household is required to purchase a [[television licence]] whether they watch television or not.
* Childless adults are required to pay for the public education of others' children. Additionally, parents whose children are not using the public school system, such as those enrolled in private or charter schools in the US, are still required to pay for other children's public education, as well.


=== Forced riders in private property ===
Collective payment schemes, such as taxes, have historically been used to address the free rider problem. However compulsory payments may create situations in which individuals are required to contribute to the cost of public goods from which they receive no benefit. This is called the "forced rider problem". <ref>[http://sobek.colorado.edu/~mciverj/Ostrom-PG&PC.PDF Public Goods and Public Choices]</ref>
* In a unionized workplace, non-union as well as union members are required to pay dues to the union representing the workplace as a condition of employment.<ref>{{cite web|author=Gary Galles |url=https://mises.org/wire/union-dues-and-free-rider-problem |title=Union Dues and the "Free Rider" Problem |publisher=mises.org |date=1994-07-01 |accessdate=2019-08-11}}</ref> This is the case in [[agency shop]] union security agreements.


==See also==
===Forced riders in taxation===
*[[Accessibility (transport)]]
The forced rider has been cited in various authors' views concerning taxation.
*[[Automotive city]]
* [[Pacifists]] are required to pay for national defense.<ref name="mises" /><ref>[http://jtp.sagepub.com/content/6/3/369 Are Public Goods Myths?]</ref><ref>[http://books.google.com/books?id=BdnxxpsF2pMC Modern Principles of Economics]</ref>{{page?|date=March 2013}}
*[[Ghetto tax]]
* [[Environmentalists]] may be required to pay for public works projects, such as dams, which they feel destroy natural habitats in ways they do not condone.<ref name="mises">[http://mises.org/rothbard/myth.pdf The Myth of Neutral Taxation]</ref>
*[[Redlining]]
* Some people feel it is unfair for them to pay local school taxes when they have no children in the [[school system]].
*[[Transit desert]]
*[[Transport divide]]


==References==
==References==
{{reflist}}
{{reflist}}


[[Category:Microeconomics]]
[[Category:Public choice theory]]
[[Category:Public choice theory]]
[[Category:Public finance]]
[[Category:Public finance]]

{{economics-stub}}

Latest revision as of 04:20, 19 May 2024

A forced rider in economics is a person who is required, by public or private entities, to share in the costs of goods or services without desiring them or valuing them at their price.

Theory

[edit]

Forced riders in taxation

[edit]

The forced rider has been cited in various authors' views concerning taxation.

  • Pacifists are required to pay for national defense.[1][2][3][page needed]
  • Environmentalists may be required to pay for public works projects, such as dams, which they feel destroy natural habitats in ways they do not condone.[1]
  • Healthy and insured individuals being forced via an individual mandate to subsidize insurance for unhealthy and previously uninsured individuals. Previously uninsured individuals are now free riders.[citation needed]
  • In many European countries, every household is required to purchase a television licence whether they watch television or not.
  • Childless adults are required to pay for the public education of others' children. Additionally, parents whose children are not using the public school system, such as those enrolled in private or charter schools in the US, are still required to pay for other children's public education, as well.

Forced riders in private property

[edit]
  • In a unionized workplace, non-union as well as union members are required to pay dues to the union representing the workplace as a condition of employment.[4] This is the case in agency shop union security agreements.

See also

[edit]

References

[edit]
  1. ^ a b "The Myth of Neutral Taxation" (PDF). July 20, 2005. Retrieved November 30, 2013.
  2. ^ Richard Cornes Todd Sandler (July 1, 1994). "Are Public Goods Myths?". Jtp.sagepub.com. Retrieved November 30, 2013.
  3. ^ Cowen, Tyler; Tabarrok, Alex (October 9, 2009). Modern Principles of Economics. Macmillan. ISBN 9781429202275. Retrieved November 30, 2013.
  4. ^ Gary Galles (July 1, 1994). "Union Dues and the "Free Rider" Problem". mises.org. Retrieved August 11, 2019.