Abstract

A collection of Head’s previously published papers are reprinted here, often without significant change. Nevertheless, the book has a great unity of purpose. It analyzes different problems related to an important new concept in economic theory: that of public goods. Head’s merit is to review, compare, and analyze the different approaches or definitions of a public good found in the literature. Further, he relates this problem to the whole field of welfare economics and finally, compares and differentiates it from the concept of merit good. Head attempts to clarify the concept of a public good by integrating it into two streams of economic thought that try to construct analytical tools for mastering the problem of market failure. He, therefore, takes up and interrelates such individualistic concepts as Pareto-optimum, consumer sovereignty, jointness of supply, indivisibility of a good, and externality; but he also pointedly refers—through his concept of merit good—to the little discussed authoritarian stream of the liberal economic tradition. To support this claim Head cites a text even from J. S. Mill. The authors that Head refers to the most are Samuelson, Musgrave, Buchanan, and Pareto. But he also incorporates Baumol, Thiebout, Olson, and Downs, among the contemporary authors, and Sidgwick, Pigou, Wicksell, and Lindahl, among the historical figures.