1. Private Goods: Private goods are those goods which yield utility only to the person consuming the good. Only the person who drink a cup of tea for example benefit from the consumption of that cup of tea. The cup of tea consumed by one person cannot be consumed by anyone else. Therefore private goods are those goods, the consumption [...]
This article throws light upon the top three approaches to public goods allocation. The approaches are: 1. The Marginal Utility Approach of Public Goods Allocation 2. Voluntary Exchange Approach 3. Samuelson’s Approach to Public Goods Allocation. 1. The Marginal Utility Approach of Public Goods Allocation: Professor A. C Pigou has made a heroic attempt to reconcile the benefit and ability [...]
Prof. Hugh Dalton points out that “in the sphere of public finance, we are still haunted by the superficial views and shallow percepts of an early age”. The principles that shaped the financial policies and operations of the state during the nineteenth century have lost its validity and applicability in the twentieth century and even today. The doctrine of Laissez-faire, [...]