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A '''forced rider''' in economics is a person who is required, by government or other collective, to share in the costs of goods or services from which he or she does not benefit. 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>{{cite web|url=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 |title=Austrian Methodology: The Preferred Tax Type |publisher=Books.google.com |date= |accessdate=2013-11-30}}</ref>
A '''forced rider''' in economics is a person who is required, by government or other collective, to share in the costs of goods or services from which he or she does not benefit. 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>{{cite book|url=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 |title=Austrian Methodology: The Preferred Tax Type |publisher=Books.google.com |date= |accessdate=2013-11-30}}</ref>


==Theory==
==Theory==
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/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>
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/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]{{dead 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 required to contribute to the cost of public goods from which they receive no benefit. This is called the "forced rider problem". <ref>{{cite web|url=http://sobek.colorado.edu/~mciverj/Ostrom-PG&PC.PDF |title=Public Goods and Public Choices |format=PDF |date= |accessdate=2013-11-30}}</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 required to contribute to the cost of public goods from which they receive no benefit. This is called the "forced rider problem".<ref>{{cite web|url=http://sobek.colorado.edu/~mciverj/Ostrom-PG&PC.PDF |title=Public Goods and Public Choices |format=PDF |date= |accessdate=2013-11-30}}</ref>


===Forced riders in taxation===
===Forced riders in taxation===
The forced rider has been cited in various authors' views concerning taxation.
The forced rider has been cited in various authors' views concerning taxation.
* [[Pacifists]] are required to pay for 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 web|url=http://books.google.com/books?id=BdnxxpsF2pMC |title=Modern Principles of Economics |publisher=Books.google.com |date= |accessdate=2013-11-30}}</ref>{{page?|date=March 2013}}
* [[Pacifists]] are required to pay for 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=http://books.google.com/books?id=BdnxxpsF2pMC |title=Modern Principles of Economics |publisher=Books.google.com |date= |accessdate=2013-11-30}}</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 |format=PDF |date= |accessdate=2013-11-30}}</ref>
* [[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 |format=PDF |date= |accessdate=2013-11-30}}</ref>
* Some people feel it is unfair for them to pay local school taxes when they have no children in the [[school system]].{{cn|date=November 2013}}
* Some people feel it is unfair for them to pay local school taxes when they have no children in the [[school system]].{{citation needed|date=November 2013}}



==References==
==References==

Revision as of 14:28, 17 July 2014

A forced rider in economics is a person who is required, by government or other collective, to share in the costs of goods or services from which he or she does not benefit. Such goods are typically non-excludable.[1][2]

Theory

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][4]

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".[5]

Forced riders in taxation

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

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. Books.google.com. Retrieved 2013-11-30.
  3. ^ Providing Global Public Goods[dead link‍]
  4. ^ Multipart pricing of public goods bbs.cenet.org.cn
  5. ^ "Public Goods and Public Choices" (PDF). Retrieved 2013-11-30.
  6. ^ a b "The Myth of Neutral Taxation" (PDF). Retrieved 2013-11-30.
  7. ^ Richard Cornes Todd Sandler (1994-07-01). "Are Public Goods Myths?". Jtp.sagepub.com. Retrieved 2013-11-30.
  8. ^ Modern Principles of Economics. Books.google.com. Retrieved 2013-11-30.
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