Merit Good


Also found in: Wikipedia.

Merit Good

In economics, a good to which persons are believed to have a right. That is, a merit good is something that should be available for free or at reduced prices because it is necessary and the free market does not provide sufficient incentives to produce it. Examples of merit goods may include education and health care, though different jurisdictions define merit goods differently.
Mentioned in ?
References in periodicals archive ?
For example, ordinary citizens regard an appendectomy as health care that is a merit good.
We get leaders we deserve, and good citizens will merit good leaders.
All the children of the nation are our children who merit good education and care, the most important things and the bases for everything," HM the King said.
Policymakers are concerned about whether a household can afford to purchase a pre-defined quantity of a merit good.
This paper attempts to examine the influence of economic and merit good concept in water supply.
The marginal utility of consumption of either the private good or the merit good is positive but diminishing.
I will argue that the three economic concepts of public, private and merit good are ideal concepts that can be more or less present in an economic event, that an economic event can embody characteristics of more than one ideal concept, and that the ideal concept of public good consists of two basic characteristics to which the economic profession has pointed by many different descriptions (I counted thirteen of them).
It then presents 17 papers in which other economists discuss the definition of merit good and its characteristics, explore its justifications, consider its proper domain, and introduce mathematical models of merit good features.
Congress seems to have decided that saving for retirement is a merit good that should be encouraged.
Musgrave's concept of merit good can be interpreted to capture this idea.