Conclusion

Abstract

The purpose of this essay has been to examine the concept of public goods in particular and external economies in general. These concepts have been thought by some economists to provide a positive explanation of the sort of activities actually undertaken in the public sector, and by others a normative explanation of the sort of activities which ought to be undertaken in the public sector. It is hoped that, while the relevance of public goods to these matters has been made clear, it is also apparent that we are a long way yet from a satisfactory theory of the public sector. There is a strong connection between public goods and public-sector activity, and it may be expected that what may eventually turn out to be a successful theory of the public sector will give a major role to public goods. But we are not there yet.