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Public Goods Calculator

Calculate optimal provision of public goods and financing mechanisms

Public Good Characteristics

Individual Valuations

Provision Options

Public Goods Analysis

Optimal Provision Level: 0 units
Total Social Benefit: $0.00
Total Cost: $0.00
Net Social Welfare: $0.00
Free-Rider Loss: $0.00
Lindahl Tax (High-Value): $0.00
Lindahl Tax (Low-Value): $0.00

Understanding Public Goods

Non-Rivalrous: One person's consumption doesn't reduce availability for others (e.g., national defense, lighthouse).

Non-Excludable: Difficult or impossible to exclude people from using the good once provided.

Free-Rider Problem: Individuals have incentive to benefit without paying, leading to under-provision.

Optimal Provision: Set where sum of individual marginal benefits equals marginal cost (Samuelson condition).

Lindahl Pricing: Theoretical solution where each person pays according to their marginal benefit.

Government Role: Often necessary to provide public goods due to market failure in private provision.