Forced rider

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A forced rider in economics is a person who is required, by government or other collective, to share in the costs of goods or services without desiring them or valuing them at their price. Such goods are typically non-excludable[1][2] and non-rivalrous.

Theory[edit]

Public goods are non-excludable. As a result, some people may be required to contribute to the cost of public goods they would prefer not to support.[3][4] An example is compulsory tax payments, where the payees have no control on the usage of the taxes. This is called the "forced rider problem".[5]

Forced riders in taxation[edit]

The forced rider has been cited in various authors' views concerning taxation.

References[edit]

  1. ^ Cowan, Tyler. "Concise Encyclopedia of Economics". Public Goods. Library of Economics and Liberty. Retrieved February 27, 2013.
  2. ^ Austrian Methodology: The Preferred Tax Type. Books.google.com. Retrieved November 30, 2013.
  3. ^ Providing Global Public Goods[dead link]
  4. ^ Multipart pricing of public goods Archived 2013-12-03 at the Wayback Machine bbs.cenet.org.cn
  5. ^ "Public Goods and Public Choices" (PDF). Archived from the original (PDF) on May 20, 2005. Retrieved November 30, 2013.
  6. ^ a b "The Myth of Neutral Taxation" (PDF). Retrieved November 30, 2013.
  7. ^ Richard Cornes Todd Sandler (July 1, 1994). "Are Public Goods Myths?". Jtp.sagepub.com. Retrieved November 30, 2013.
  8. ^ Modern Principles of Economics. Books.google.com. Retrieved November 30, 2013.