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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Merit goods I We may learn a lot by studying "merit goods," he writes, referring to goods that are deemed "loathsome to price.
But, obviously the RNR cannot be applied to all goods and services as some are merit goods and some are demerit goods.
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.
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.
Again in contrast, a specific purpose transfer should be favoured if the source of regional inequality lies in subnational spending on certain merit goods (such as education or health care), rather than in revenue raising capacities.
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.
Merit goods have the additional characteristic that if they were not provided by the government some people would not or could not acquire them on their own.
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.