Forced rider: Difference between revisions
Content deleted Content added
Rescuing 2 sources and tagging 0 as dead. #IABot (v2.0beta10) |
short desc |
||
| Line 1: | Line 1: | ||
{{Use American English|date = March 2019}} |
|||
{{Short description|Someone required to pay for something they don't want}} |
|||
{{Use mdy dates|date = March 2019}} |
|||
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 without desiring 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>{{cite book|url=https://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 without desiring 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>{{cite book|url=https://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> |
||
Revision as of 02:48, 10 March 2019
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 without desiring them. Such goods are typically non-excludable.[1][2]
Theory
Public goods are non-excludable. As a result, some people may be required to contribute to the cost of public goods they would prefer not to support.[3][4] An example is compulsory tax payments, where the payees have no control on the usage of the taxes. This is called the "forced rider problem".[5] Due to the nature of a non-excludable good, they do still receive the benefits of the good they are forced to pay for via taxation or other compulsory payment.
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][7][8][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.[6]
See also
- Free rider problem, an opposite kind of problem with public goods
References
- ^ Cowan, Tyler. "Concise Encyclopedia of Economics". Public Goods. Library of Economics and Liberty. Retrieved February 27, 2013.
- ^ Austrian Methodology: The Preferred Tax Type. Books.google.com. Retrieved November 30, 2013.
- ^ Providing Global Public Goods[dead link]
- ^ Multipart pricing of public goods Archived 2013-12-03 at the Wayback Machine bbs.cenet.org.cn
- ^ "Public Goods and Public Choices" (PDF). Archived from the original (PDF) on May 20, 2005. Retrieved November 30, 2013.
{{cite web}}: Unknown parameter|dead-url=ignored (|url-status=suggested) (help) - ^ a b "The Myth of Neutral Taxation" (PDF). Retrieved November 30, 2013.
- ^ Richard Cornes Todd Sandler (July 1, 1994). "Are Public Goods Myths?". Jtp.sagepub.com. Retrieved November 30, 2013.
- ^ Modern Principles of Economics. Books.google.com. Retrieved November 30, 2013.