Pareto Optimality, External Benefits and Public Goods: A Subjectivist Approach

It will be argued in this paper that the external-benefits and public-goods arguments are incorrect and are due to a failure to consider all or the correct costs involved in the decision on whether the public sector should subsidize or provide the goods in question. The first part of this paper will briefly discuss the benchmark of economic efficiency, Pareto optimality.

Volume 4, Number 1 (1980)