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Some Theoretical Aspects of Merit Goods and Tutelage

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Planning and Market Relations

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Abstract

What is commonly called the ‘social sector of the economy’ does not, as the adjective suggests, cover the whole of the economy, but only a tertiary and often non-market sector comprising an apparently heterogeneous assortment of things like education, culture, health, low-cost housing, assistance to large families, children and old people, etc. But the assortment may be less heterogeneous than it seems, for ultimately all these items concern the creation and upkeep of major components of human capital.

What would we think of judging the welfare contribution of homicide by the code of behaviour established in a cannibalistic society? The best that can be attained in that way is a judgement on the consistency of the cannibals’ behaviour with their own cannibalistic rules and regulations.

P. A. Baran [2A, p. 27]

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© 1971 International Economic Association

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Bénard, J. (1971). Some Theoretical Aspects of Merit Goods and Tutelage. In: Kaser, M., Portes, R. (eds) Planning and Market Relations. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-15410-4_20

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