IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-23681-3_8.html
   My bibliography  Save this book chapter

Why Should Governments Encourage Improvements on Infrastructure? Indirect Network Externality of Transaction Efficiency

In: Increasing Returns and Economic Efficiency

Author

Listed:
  • Yew-Kwang Ng

Abstract

Governments have been very active in engaging and in encouraging the improvements in transaction efficiency, including the provision of legal, social, and economic infrastructure. While this may partly be explained by the public goods nature, the presence of indirect network externalities (or a second-level publicness) due to the economies of specialization may also be important. The improvement in transaction (including communication and transportation) efficiency may generate benefits in excess of the direct private benefits through the promotion of division of labour that leads to more economies of specialization and the availability of more goods in the market. This is shown in the Yang–Ng framework of inframarginal analysis.

Suggested Citation

  • Yew-Kwang Ng, 2009. "Why Should Governments Encourage Improvements on Infrastructure? Indirect Network Externality of Transaction Efficiency," Palgrave Macmillan Books, in: Increasing Returns and Economic Efficiency, chapter 8, pages 88-100, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-23681-3_8
    DOI: 10.1057/9780230236813_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yew-Kwang Ng, 2014. "Why Is Finance Important? Some Thoughts On Post-Crisis Economics," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(05), pages 1-20.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-23681-3_8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.