Merit Good

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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.
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He then presents a special account of merit goods, which he deems a special account of a service category of outstanding policy relevance.
It represents one of only five merit goods in the world.
Ethical Dimensions of the Economy: Making Use of Hegel and the Concepts of Public and Merit Goods.
He argues that--despite the difficulties that result in attempts to formulate them--public and merit goods are more than theoretical constructs.
Affordability standards are frequently used in making food and housing policy, but both empirically and theoretically health care operates quite differently than these other merit goods.
It evaluates the rationale of the affordability exemption by comparing health care services and other merit goods, and provides suggestions for addressing flaws introduced by an affordability exemption in the context of a mandate.
Merit goods may include both private and public goods if the free market or a political decision process based on individual preferences, respectively, would not result in a sufficient supply of the good being produced and adequately distributed.
The empowered committee of state finance ministers has proposed that the United States have the option to either exempt specific food grain from VAT or levy the merit goods rate of 4%, considering their socially sensitive nature.
The pioneering studies of Bernheim, Shleifer, and Summers (1985) and Cox (1987) further argue that intergenerational transfers are related to the exchange between parent and a child for family-specific merit goods such as child companionship or services.
Merit goods confer benefit mainly on the recipient.
More difficult to fit into economic reasoning, but still a common public policy target, are merit goods such as education, health care, vehicles for saving for retirement, provision for the emergencies of life, cultural events, and housing.
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.