Public goods - What are they? characteristics, types, examples, and more

Public goods

Assets owned by the State.

What are public goods?

Public goods are those goods whose property belongs to the State and whose purpose is to satisfy general needs; therefore, its use seeks to satisfy the general interest of the inhabitants and not the particular interest of an individual.

The main quality of these goods is to satisfy certain needs without requiring any monetary contribution to access their benefits.

Public goods are outside of trade because their purpose is to satisfy the needs of the entire population, without exceptions; for example economic, social, cultural, etc.

Due to the fact that the State is in charge of administering said assets, their respective maintenance and processing are at their own expense, while the contribution made by consumers is through taxes granted to the State.

Characteristics of public goods

The main characteristics of public goods are the following:

• The beneficiaries or consumers are the general populations.
• They present non-rival consumption.
• They do not allow exclusions.
• Through taxes, citizens contribute monetarily to the construction, development, and maintenance of these, and the State is in charge of said collection.
• The State has the capacity to distribute the resources for the construction of new public goods.
• They are subsidized by the state.
• They are openly destined for free consumption by the population.
• They are out of business.

Types of public goods

Public goods are classified as follows:

• Pure public good: those public goods whose qualities benefit the entire population without exclusions and whose consumption is non-rival, that is, no monetary contribution is required to access them.
• Impure public good: those public goods whose qualities are altered due to various factors: they may not benefit the entire population due to certain exclusions; they may require a monetary contribution to be able to access them; It may be that its consumption, by the population, causes constant wear and tear in its entirety, for example in the case of a road that shows signs of wear due to its constant use.

Examples of public goods

Here are some examples of public goods:

• A freeway.
• A park.
• Public lighting.
• Natural reserves.
• Monuments.
• Public Libraries.
• Public schools.
• Public transport buses.
• Public fountains.
• Public hospitals.
• An airport.
• A lighthouse.

 

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