----------------- HES POSTING ----------------- What we need is a set of clear definitions of 1) A Public Good: one which is not used up in consumption 2) An Externality: a third party effect in a two way transaction. 3) A Merit Good: one which social values dictate should be available even to those who cannot afford it in strict market terms. 4) A Quasi Public Good: one which can be supplied by the market, but which, for some reason in efficiency, is better supplied publicly. 5) A Market Failure: an inefficient result in a market system All of the above are definitions rooted in the concept of efficiency. All overlap one or all of the others. I do not pretend for a moment that the above definitions are completely satisfactory. I do think that until some such definitions are clearly laid out, there is not going to be a satisfactory discussion of how their substance has been worked into theory and policy over the past (say) two hundred and fifty years. Robin Neill ------------ FOOTER TO HES POSTING ------------ For information, send the message "info HES" to [log in to unmask]