According to our research, lets first focus in public choices and the importance of it and it has a few. Starting with the definition of public choice and that is a tool used in economy that deals with traditional problems of political science, and it could be in both private and public sectors.
With public choice we have to understand the importance of it and its main importance is allowing us to represent different kinds of rent-seeking and free-riding by voters, politicians, etc. In addition to that it helps in constitution and government that are democratic because it is able to attempt examining systems of those governments, with people governed define the government as being under a constitution and both failure and success could be examined in specific details.
In addition to this, we have voting in pubic choices and how they pay attention to the problems. It is leading them to figure out things about how it does not always achieve the results desired and finding other ways of voting methods and being inspected and evaluated, but it is still hard to do that.
As well as, rent-seeking and it has so many things to do about it. One of which is that it obtains special ways of being treated by the government at the cost or expense of the rest of us. It also shines the light on private organizations transforming their land.
Also, it included bureaucracy. It is actually a sub-filed in the major and it is a standard used model. What they try to reach out of this is a normal picture of chief, who is a person on a specific salary who is worried or just for making the appointed person happy or pleased and has someone above of them that has the power to either hire or fire them.
Then we have political stance, and that is a diverse ideology around public choice academics. One of the examples is Mancur Olson who is a supporter of a solid state and was against political interests’ group. Moreover, we have James Buchanan an American politician, who also discussed this topic by proposing a public choice idea and that is “Politics without romance” and it stressed the idea of having a serious method to make a faultless political set anti market failure.
Finally, public choices also examine so many options that is related with solving so many social problems that I because of living in groups.
Then we move on to public goods and the importance of it. Starting with its definition. In economics, Public good is a good in which is both non-rivalrous and non-excludable that those individuals are not able to be effectually removed from usage and was sued by and individual that doesn’t reduce it being available to other individuals.
The importance of public good: First of all, public goods include much information that includes official statistics, language, knowledge and so many other things. In economics public goods is helpful because it’s absorbed by a whole society and not really or not particularly by one individual consumer. Public goods are also tax revenues financed and that all of public goods are being used or absorbed without lowering the change of other goods being available.
In addition to that, public goods are also important because from it we are able to know how a specific society is functioning and if there is a problem coming in the future, because of those provided goods and that is known/called “Free-rider problem”. The free rider problem is known to give us a very good explanation of market failure. And what a company can go through if each person in the company is after individual interests and will not give us efficient results.
We can also give some examples of how important public goods are and how we can use it. One of the most usual examples used are environmental goods such as fireworks, clean air defense and so many other things. Also, they can also get into topics of statistics, invention and software development.
A more detailed example that could be given is orphan drug; those are medicines that are made to treat rare conditions that humans can be diagnosed in. Such time of drugs needs very strict incentives in government to be produced and they cannot be called a public good because they do not fulfill requirements such as streets, law enforcement. Etc.
Public goods also have in importance that goes further into creating solutions for both economic and political dilemma. Such as government provision and it allows us to save from the liability of becoming a free-rider. One of the most frequent used problem solved issues is imposing taxation by states or governments to the funds of public goods production. And it goes further to solve many other problems such as joint and subsidies products, the merge of free riders and into noble solutions of topics like social norms and voluntary organizations and so many other topics, where problems are carefully studied and looked into and come out with a solution that will help the problem to be solved.