Abstract

There is a presumption in some circles that the identification of an externality or a public good presents a prima facie case for government intervention. Tyler Cowen has assembled a group of articles that challenge this view by arguing that the market, broadly construed, can handle many problems of public goods and externalities that are normally considered the province of the state. Although these articles present a stimulating perspective on problems of externalities and public goods, several of the essays overstate their case and misrepresent the standard theory of public goods and externalities.