Role of Government in Health Part 2 Public Goods

Summary

In this segment, David Bishai discusses the role of government in health, particularly focusing on public goods and merit goods. Merit goods are under-consumed but deemed desirable by entities like governments, exemplified by education and vaccinations. The script explores concepts like externalities, paternalistic altruism, and the definitions of rival and non-rival goods, excludable and non-excludable goods, leading to the identification of pure public goods. Examples in health include controlling contagious diseases and improving environmental health, emphasizing the importance of government institutions in ensuring public health.

Takeaways

• 🏛 The role of government in health is to address issues related to public goods and merit goods, which are under-consumed but deemed desirable by entities like governments or educators.
• 🧬 Merit goods, such as education, vaccinations, and exercise, are promoted by governments due to their perceived benefits to society, often based on paternalistic altruism.
• 🤔 Paternalistic altruism is the concept where one party, like a government, wants another party to be happy in a specific way, hence providing merit goods instead of cash.
• 🍪 Rival goods are those that can only be consumed by one person at a time, like a cookie, whereas non-rival goods can be enjoyed by multiple people without diminishing the value, like the moon.
• 🚫 Excludable goods are those from which people can be excluded if they haven't paid or met certain criteria, contrasting with non-excludable goods that cannot be withheld from anyone.
• 🌐 A pure public good is defined as non-rival and non-excludable, meaning everyone can benefit from it without preventing others from doing the same.
• 🛑 Examples of public goods in health include controlling contagious diseases like COVID-19, environmental health improvements, and regulation of dangerous consumer products.
• 🏥 The quality of health services in a country is considered a special form of public good, as it benefits the entire population and cannot be withheld from individuals.
• 🔍 The taxonomy of goods includes private goods, club goods, common pool resources, and pure public goods, each with different combinations of rivalry and excludability.
• 🌐 National defense is a classic example of a public good provided by governments, illustrating the concept of excludability within a nation's borders.
• 🌍 There are also global public goods, such as the eradication of COVID-19, which would benefit everyone on the planet and cannot be excludable.
• 💡 The script suggests looking at the PowerPoint notes for additional insights on whether altruistic glow is a local or global public good, indicating further exploration of public goods concepts.

Q & A

What is the main focus of David Bishai's segment?

The main focus of David Bishai's segment is the role of government in health, specifically discussing public goods and merit goods.

Why are merit goods considered important by governments?

Merit goods are considered important by governments because they are under-consumed by individuals but are judged to be desirable by entities such as the government, which may have reasons like externalities or the need for a healthy population.

What is an example of a merit good mentioned in the script?

Examples of merit goods mentioned in the script include education, vaccinations, and exercise.

What is the rationale behind providing merit goods?

The rationale behind providing merit goods is paternalistic altruism, where person A wants person B to be happy in the exact manner defined by person A, hence providing a specific good rather than cash.

What is the difference between a rival good and a non-rival good?

A rival good is one that can only be consumed by one person at a time, like a cookie. A non-rival good is one where consumption by person A does not affect the consumption by person B, such as the ability to look at the moon.

What are excludable goods and how do they differ from non-excludable goods?

Excludable goods are those for which it is possible to exclude people from enjoying them, such as through enforcing private property rights. Non-excludable goods, on the other hand, are those from which it is not possible to exclude people, like the moon.

Define a pure public good according to the script.

A pure public good is defined as a good that is non-rival and non-excludable, meaning that everybody can enjoy it and it is not possible to stop anybody from enjoying it.

What are some examples of public goods in health mentioned in the script?

Examples of public goods in health mentioned in the script include controlling contagious diseases like COVID-19, controlling environmental health threats, regulating dangerous consumer products, and improving the safety of roads.

How does the script differentiate between private goods, club goods, common pool resources, and pure public goods?

Private goods are rival and excludable, like a cheeseburger. Club goods are non-rival but excludable, such as a cable TV network. Common pool resources are rival but non-excludable, like a trout stream. Pure public goods are non-rival and non-excludable.

What is the role of government in providing public goods as discussed in the script?

The role of government in providing public goods, as discussed in the script, is to create excludability clauses and ensure that citizens enjoy the public goods of the country, such as national defense.

What is the script's perspective on global public goods?

The script suggests that there are global public goods, such as the eradication of COVID-19, which would benefit everyone on the planet and cannot exclude anyone from its benefits.