Provision of Public goods and services is a key consideration by most Governments. In the quest to provide for such goods, some goods and services such as health and education are provided directly by the government, while others are funded publicly but provided privately. What is the difference between these two mechanisms of public financing? Why do you think the same government would use one approach sometimes and the other approach at other times? Are there any efficiency and equity consideration when providing public goods? Kindly explain.

Provision of Public goods and services is a key consideration by most Governments. In the quest to provide for such goods, some goods and services such as health and education are provided directly by the government, while others are funded publicly but provided privately. What is the difference between these two mechanisms of public financing? Why do you think the same government would use one approach sometimes and the other approach at other times? Are there any efficiency and equity consideration when providing public goods? Kindly explain.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 3PA

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