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Additional resources for Does Government Need to be Involved in Primary and Secondary Education: Evaluating Policy Options Using Market Role Assessment

Sample text

Hence, the sum of the gains and losses is zero. 6 A narrow exception to this would be the case in which an individual builds a solar collector that interferes with the ability of neighbors to access sunlight. 7 It should be noted, however, that one of the arguments supporting a school lunch program cites the spillover effects of improved nutrition and health. For example, a better nourished child will generally be a healthier child and less likely to infect other students with communicable diseases.

That is,“…when the production of a good or service is subject to continually decreasing average costs (the greater the level of output, the lower the cost per unit),…a single firm can take advantage of economies of scale and supply the entire industry output, at least for a sizeable region” (Rosen 1992, p. 338). Under such circumstances, public production of the good or service is often undertaken. In other circumstances, the natural monopoly conditions are addressed through government regulation of a private producer.

For example, research has shown that lifetime earnings increase substantially with educational attainment. In addition, evidence indicates that better-educated people make better health-related decisions and tend to live longer and more productively as a result. However, additional benefits of education flow to society as a whole. , 1994 p. 17). 15 “Recent economic studies argue that education may provide benefits to society that are greater than the sum of its benefits to individuals; by providing a rich environment for innovation and scientific discovery, education can accelerate the growth rate Market Role Assessment 25 of the economy” (Hanushek et al.

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