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Public Interests and the Theory of Public Goods

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  • A. Rubinstein

Abstract

The article is devoted to the modern public economics. The author analyzes the German "Finanzwissenschaft" tradition. Major issues connected to the problem of interests of the society as a whole were raised within this tradition: the problem of public goods pricing and the free-rider problem. The author considers this tradition taking into account the neoclassical economic concept of public sector. The article introduces the "public goods paradox" - incompatibility of methodological individualism and the positive demand for public goods. The author criticizes neoclassical theories (P. Samuelson, R. Musgrave, H. Margolis) and proposes a new approach. He develops the complementarity principle alternative to methodological individualism. According to this idea interests of the society as a whole are irreducible to interests of individuals.

Suggested Citation

  • A. Rubinstein, 2007. "Public Interests and the Theory of Public Goods," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 10.
  • Handle: RePEc:nos:voprec:y:2007:id:1662
    DOI: 10.32609/0042-8736-2007-10-90-113
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