I
SEDUCATI
ONAPUBLI
CGOOD?WHATMARKETFAI
LURESEXI
STTOWARRANT
GOVERNMENTI
NTERVENTI
ON?
I
nnumer
ousscenar
ios,goodscannev
erbeof
fer
edwi
thef
fi
ciencyt
hrought
he
mar
ketsy
stem si
ncei
tisdi
ff
icul
t,oratt
imesunmanageabl
e.Thi
sissoast
hegoods
cannotbe sol
d by t
he uni
t.
,ther
eby maki
ng t
he benef
it
sresul
ti
ng f
rom t
he
consumpt
ionofsuchgoodst
obeshar
edonl
y.(
Hyman,
2010)Goodsexhi
bit
ingsuch
anat
urecanbedef
inedaspubl
i
cgoods.Bydef
ini
ti
on,publ
i
cgoodsar
ethegoods
t
hatar
ebot
hnon-
excl
udabl
eandnon-
ri
vali
nthei
rconsumpt
ionorusage.Duet
o
t
hei
rnon-
excl
usi
onnat
ure,
indi
vi
dual
scannotbesuccessf
ull
yexcl
udedf
rom useand
wher
eusebyonei
ndi
vi
dualdoesnotr
educeav
ail
abi
l
ityoft
hegoodt
oot
her
sthus
maki
nggi
vi
ngpubl
i
cgoodst
hatdi
sti
ngui
shi
ngf
act
oroft
hem bei
ngnonr
ivali
n
nat
ure.Nonet
hel
ess,t
hepr
ovi
sionofpubl
i
cgoodsar
enotonl
ygoodspr
ovi
dedby
t
hepubl
i
cbutr
athercanaswel
lbesuppl
i
edbyt
hepr
ivat
esect
orandpr
ivat
egoods
byt
hepubl
i
csect
or.Ont
heot
herhand,pr
ivat
egoodsar
eit
emst
haty
iel
dposi
ti
ve
benef
it
stopeopl
eandi
sexcl
udabl
eint
hesenset
hatt
heowner
soft
hegoodcan
pr
eventt
hosewhohav
en’
tpai
dfort
hegoodf
rom usi
ngi
t.Pr
ivat
egoodsar
eusual
l
y
pr
ovi
dedundermar
ketmechani
sm whi
chf
unct
ionsusi
ngt
heexchangef
unct
ion.
Wi
tht
hedi
sti
nct
ivef
act
orsofpubl
i
cgoodsdescr
ibedabov
e,educat
ioncanbe
cl
assi
fi
edasaquasi
-publ
i
cgood,t
haty
iel
dsv
ary
ingext
ernal
i
tieswi
thi
tspr
ovi
sion.
Thi
sissoas;educat
ioni
saser
vicet
hathassomechar
act
eri
sti
csofapubl
i
cgood
whi
l
eatt
hesamet
imehav
ingchar
act
eri
sti
csofapr
ivat
egood.(
Hyman,2010)
.An
i
l
lust
rat
ionofsuchi
sthepr
ovi
sionofpr
imar
yeducat
ioni
nMal
awi
.Pr
ovi
sionof
pr
imar
yeducat
ioni
nMal
awicanbecl
assi
fi
edasapur
epubl
i
cgood.Thi
sissoas
t
heconsumer
soft
hepr
imar
yeducat
ionar
enotr
equi
redt
opayf
ort
heeducat
ion
t
hati
spr
ovi
dedt
othem.
Hencet
hismakesi
tdi
ff
icul
toft
heexcl
usi
onpr
inci
plet
obeappl
i
edandmaki
ngt
he
consumpt
ionofpr
imar
yeducat
ionbyt
hest
udent
snonr
ival
,si
ncet
hemor
eone
st
udenti
napr
imar
yschooll
ear
ns,i
tdoesnotr
educet
heav
ail
abi
l
ityofanot
her
st
udentl
ear
ningi
nthev
erysamecl
asst
her
eby
,ther
eisnoext
racosti
ncur
redwhen
admi
tt
ingonemor
est
udenti
ntoapr
imar
yschool
.Nonet
hel
ess,t
hei
ncr
easei
n
numberofst
udent
satt
hepr
imar
yschoolwoul
dresul
tint
oincr
easei
ndemandf
or
SEDUCATI
ONAPUBLI
CGOOD?WHATMARKETFAI
LURESEXI
STTOWARRANT
GOVERNMENTI
NTERVENTI
ON?
I
nnumer
ousscenar
ios,goodscannev
erbeof
fer
edwi
thef
fi
ciencyt
hrought
he
mar
ketsy
stem si
ncei
tisdi
ff
icul
t,oratt
imesunmanageabl
e.Thi
sissoast
hegoods
cannotbe sol
d by t
he uni
t.
,ther
eby maki
ng t
he benef
it
sresul
ti
ng f
rom t
he
consumpt
ionofsuchgoodst
obeshar
edonl
y.(
Hyman,
2010)Goodsexhi
bit
ingsuch
anat
urecanbedef
inedaspubl
i
cgoods.Bydef
ini
ti
on,publ
i
cgoodsar
ethegoods
t
hatar
ebot
hnon-
excl
udabl
eandnon-
ri
vali
nthei
rconsumpt
ionorusage.Duet
o
t
hei
rnon-
excl
usi
onnat
ure,
indi
vi
dual
scannotbesuccessf
ull
yexcl
udedf
rom useand
wher
eusebyonei
ndi
vi
dualdoesnotr
educeav
ail
abi
l
ityoft
hegoodt
oot
her
sthus
maki
nggi
vi
ngpubl
i
cgoodst
hatdi
sti
ngui
shi
ngf
act
oroft
hem bei
ngnonr
ivali
n
nat
ure.Nonet
hel
ess,t
hepr
ovi
sionofpubl
i
cgoodsar
enotonl
ygoodspr
ovi
dedby
t
hepubl
i
cbutr
athercanaswel
lbesuppl
i
edbyt
hepr
ivat
esect
orandpr
ivat
egoods
byt
hepubl
i
csect
or.Ont
heot
herhand,pr
ivat
egoodsar
eit
emst
haty
iel
dposi
ti
ve
benef
it
stopeopl
eandi
sexcl
udabl
eint
hesenset
hatt
heowner
soft
hegoodcan
pr
eventt
hosewhohav
en’
tpai
dfort
hegoodf
rom usi
ngi
t.Pr
ivat
egoodsar
eusual
l
y
pr
ovi
dedundermar
ketmechani
sm whi
chf
unct
ionsusi
ngt
heexchangef
unct
ion.
Wi
tht
hedi
sti
nct
ivef
act
orsofpubl
i
cgoodsdescr
ibedabov
e,educat
ioncanbe
cl
assi
fi
edasaquasi
-publ
i
cgood,t
haty
iel
dsv
ary
ingext
ernal
i
tieswi
thi
tspr
ovi
sion.
Thi
sissoas;educat
ioni
saser
vicet
hathassomechar
act
eri
sti
csofapubl
i
cgood
whi
l
eatt
hesamet
imehav
ingchar
act
eri
sti
csofapr
ivat
egood.(
Hyman,2010)
.An
i
l
lust
rat
ionofsuchi
sthepr
ovi
sionofpr
imar
yeducat
ioni
nMal
awi
.Pr
ovi
sionof
pr
imar
yeducat
ioni
nMal
awicanbecl
assi
fi
edasapur
epubl
i
cgood.Thi
sissoas
t
heconsumer
soft
hepr
imar
yeducat
ionar
enotr
equi
redt
opayf
ort
heeducat
ion
t
hati
spr
ovi
dedt
othem.
Hencet
hismakesi
tdi
ff
icul
toft
heexcl
usi
onpr
inci
plet
obeappl
i
edandmaki
ngt
he
consumpt
ionofpr
imar
yeducat
ionbyt
hest
udent
snonr
ival
,si
ncet
hemor
eone
st
udenti
napr
imar
yschooll
ear
ns,i
tdoesnotr
educet
heav
ail
abi
l
ityofanot
her
st
udentl
ear
ningi
nthev
erysamecl
asst
her
eby
,ther
eisnoext
racosti
ncur
redwhen
admi
tt
ingonemor
est
udenti
ntoapr
imar
yschool
.Nonet
hel
ess,t
hei
ncr
easei
n
numberofst
udent
satt
hepr
imar
yschoolwoul
dresul
tint
oincr
easei
ndemandf
or
