Dictionary of Arguments


Philosophical and Scientific Issues in Dispute
 
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Entry
Reference
Social Goods Buchanan Mause I 2767259
Social Goods/Tullock/Buchanan: Background problem: because of the unidentifiable number of free riders who do not pay anything for the benefit of the social good, its value cannot be determined. (See also VsSmauelson). Solution/Tullock/Buchanan: the ability to approve should not be applied to individual expenditure items but to the constitutional level. Question: how to design decision rules at the political level in such a way that undesirable and unfavourable results are largely excluded. (1)
Buchanan: from this, a constitutional economics based on contract theory is developed. (2)


1. James M. Buchanan & Gordon Tullock. The calculus of consent. Logical foundations of constitutional democracy. Ann Arbor 1962.
2. James M. Buchanan. 1990. The domain of constitutional economics. Constitutional Political Economy 1 (1): 1– 18.

EconBuchan I
James M. Buchanan
Politics as Public Choice Carmel, IN 2000


Mause I
Karsten Mause
Christian Müller
Klaus Schubert,
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018
Social Goods Tullock Mause I 276
Social Goods/Tullock/Buchanan: Background problem: because of the unidentifiable number of free riders who do not pay anything for the benefit of the social good, its value cannot be determined. (See also VsSmauelson). Solution/Tullock/Buchanan: the ability to approve should not be applied to individual expenditure items but to the constitutional level. Question: how to design decision rules at the political level in such a way that undesirable and unfavourable results are largely excluded. (1)
Buchanan: from this, a constitutional economics based on contract theory is developed. (2)


1. James M. Buchanan & Gordon Tullock. The calculus of consent. Logical foundations of constitutional democracy. Ann Arbor 1962.
2. James M. Buchanan. 1990. The domain of constitutional economics. Constitutional Political Economy 1 (1): 1– 18.

EconTull I
Gordon Tullock
Arthur Seldon
Gordon L. Brady,
Government failure: A primer in public choice Washington 2002


Mause I
Karsten Mause
Christian Müller
Klaus Schubert,
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018
Social Goods Samuelson Mause I 274f
Social Goods/Samuelson: Social Goods are Characterized 1. By non-rivalry: e.g. national defence: its quality is independent of how many individuals it benefits. Unlike on the market for private goods (see Markets/Economic Theories) the sum of all individuals with a marginal willingness to pay, who consume the nonrival goods together must be added up in the case of nonrivalising goods.
2. By non-exclusion: even non-paying members can consume public goods. (free rider problem).
Solution/Samuelson: Assuming there were only two goods (a social and a private one); if now the appreciation for the jointly consumed good is equated with the marginal social costs of providing this good, the Samuelson condition is obtained.
VsSamuelson: Problem: the Samuelson condition is virtually useless because the concrete values it should be fed with cannot be determined. ((s) Reason: the number of free riders is undetermined). See also Social Goods/Economic Theories.

EconSamu I
Paul A. Samuelson
The foundations of economic analysis Cambridge 1947


Mause I
Karsten Mause
Christian Müller
Klaus Schubert,
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018
Social Goods Lindahl Mause I 276
Social Goods/Taxes/Lindahl: because of the principle of equivalence (which requires that every tax be legitimized by a benefit for the citizens on the expenditure side), Lindahl proposed individualized taxes as early as 1919, which are oriented towards the individual marginal benefit from the consumption of public goods. VsLindahl: Problem: then one comes back to the Samuelson condition and the problem that the value of the public property cannot be determined because of the undetermined number of free riders. See Social Goods/Samuelson. (See also VsSamuelson).
Solutions: See Social Goods/Tullock, Social Goods/Buchanan.

EconLind I
Erik Lindahl
Just Taxation - A Positive Solution in: R. A. Musgrave et al. (eds.), Classics in the Theory of Public Finance, International Economic Association 1958
German Edition:
Die Gerechtigkeit der Besteuerung Lund 1919


Mause I
Karsten Mause
Christian Müller
Klaus Schubert,
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018