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==Overview==
==Overview==
Unlike private goods, 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]</ref>
Unlike private goods, 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>


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 forced to contribute to the cost of public goods which they would not otherwise desire. This is called the "forced rider problem". Some writers have speculated that the forced rider problem might be even a bigger problem than the free-rider problem.<ref name="mises">[http://mises.org/rothbard/myth.pdf The Myth of Neutral Taxation]</ref><ref>[http://books.google.com/books?id=dHI2I5m0sZ0C Bound to Be Free]</ref><ref>[http://books.google.com/books?id=0ozwAAAAMAAJ Public Finance]</ref>{{Page?|date=March 2013}}<ref>Kennett, Patricia (2008). ''[http://books.google.com/books?id=SLRFLlIrqLsC&pg=PA28&lpg=PA28&dq=Nevertheless,+the+classic+solution+to+the+problem+of+underprovision+of+public+goods+has+been+government+funding&source=bl&ots=h__mdFaQDM&sig=vedpmP00LeKdmE2eiGWDB9gpt7A&hl=en&sa=X&ei=3Z4NUbjNJuiligLwqYDYAw&ved=0CE4Q6AEwAw#v=onepage&q=Nevertheless%2C%20the%20classic%20solution%20to%20the%20problem%20of%20underprovision%20of%20public%20goods%20has%20been%20government%20funding&f=false Governance, globalization and public policy]''. Edward Elgar Publishing. p.&nbsp;28. ISBN 978-1845424367</ref><ref>[http://sobek.colorado.edu/~mciverj/Ostrom-PG&PC.PDF Public Goods and Public Choices]</ref><ref>[http://www.ctf.ca/ctfweb/Documents/PDF/1997ctj/1997CTJ1_Bird.pdf User Charges for Public Services: Potentials and Problems]</ref><ref>[http://books.google.com/books?id=mHLtRkmFV5AC&pg=PA137&dq=%22preference+revelation%22+optimal+provision&hl=en&sa=X&ei=xeQIUYrzI8raigLQ-oC4BA&ved=0CFEQ6AEwBg#v=onepage&q=%22preference%20revelation%22%20optimal%20provision&f=false Ethical Dimensions of the Economy]</ref>
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 forced to contribute to the cost of public goods which they would not otherwise desire. This is called the "forced rider problem". Some writers have speculated that the forced rider problem might be even a bigger problem than the free-rider problem.<ref name="mises">[http://mises.org/rothbard/myth.pdf The Myth of Neutral Taxation]</ref><ref>[http://books.google.com/books?id=dHI2I5m0sZ0C Bound to Be Free]</ref><ref>[http://books.google.com/books?id=0ozwAAAAMAAJ Public Finance]</ref>{{Page?|date=March 2013}}<ref>Kennett, Patricia (2008). ''[http://books.google.com/books?id=SLRFLlIrqLsC&pg=PA28&lpg=PA28&dq=Nevertheless,+the+classic+solution+to+the+problem+of+underprovision+of+public+goods+has+been+government+funding&source=bl&ots=h__mdFaQDM&sig=vedpmP00LeKdmE2eiGWDB9gpt7A&hl=en&sa=X&ei=3Z4NUbjNJuiligLwqYDYAw&ved=0CE4Q6AEwAw#v=onepage&q=Nevertheless%2C%20the%20classic%20solution%20to%20the%20problem%20of%20underprovision%20of%20public%20goods%20has%20been%20government%20funding&f=false Governance, globalization and public policy]''. Edward Elgar Publishing. p.&nbsp;28. ISBN 978-1845424367</ref><ref>[http://sobek.colorado.edu/~mciverj/Ostrom-PG&PC.PDF Public Goods and Public Choices]</ref><ref>[http://www.ctf.ca/ctfweb/Documents/PDF/1997ctj/1997CTJ1_Bird.pdf User Charges for Public Services: Potentials and Problems]</ref><ref>[http://books.google.com/books?id=mHLtRkmFV5AC&pg=PA137&dq=%22preference+revelation%22+optimal+provision&hl=en&sa=X&ei=xeQIUYrzI8raigLQ-oC4BA&ved=0CFEQ6AEwBg#v=onepage&q=%22preference%20revelation%22%20optimal%20provision&f=false Ethical Dimensions of the Economy]</ref>

Revision as of 01:23, 9 March 2013

A forced rider in economics refers a person who is compelled to share in the costs of public goods provided by government or other collective, which they do not desire. Such goods are typically non-excludable in that everyone in the economy shares the goods whether desired or not.[1][2] In some views, this is called the forced rider problem.

Overview

Unlike private goods, public goods are non-excludable and 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".[3][page needed][4][5]

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 forced to contribute to the cost of public goods which they would not otherwise desire. This is called the "forced rider problem". Some writers have speculated that the forced rider problem might be even a bigger problem than the free-rider problem.[6][7][8][page needed][9][10][11][12]

Forced riders in taxation

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

  • Pacifists are required to pay for national defense.[6][13][14][page needed]
  • Environmentalists may be required to pay for public works projects, such as dams, which they feel destroy the habitats of endangered plants and animals.[6]
  • Some people feel it is unfair for them to pay local school taxes when they have no children in the school system.[citation needed]

References

  1. ^ Cowan, Tyler. "Concise Encyclopedia of Economics". Public Goods. Library of Economics and Liberty. Retrieved 27 February 2013.
  2. ^ Austrian Methodology: The Preferred Tax Type
  3. ^ The Encyclopedia of Libertarianism
  4. ^ Providing Global Public Goods[dead link‍]
  5. ^ Multipart pricing of public goods bbs.cenet.org.cn
  6. ^ a b c The Myth of Neutral Taxation
  7. ^ Bound to Be Free
  8. ^ Public Finance
  9. ^ Kennett, Patricia (2008). Governance, globalization and public policy. Edward Elgar Publishing. p. 28. ISBN 978-1845424367
  10. ^ Public Goods and Public Choices
  11. ^ User Charges for Public Services: Potentials and Problems
  12. ^ Ethical Dimensions of the Economy
  13. ^ Are Public Goods Myths?
  14. ^ Modern Principles of Economics
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