Collective good

economic-dictionary

A collective good is one that shares its use or enjoyment by more than one individual, belonging to a group of these and whose property is not exclusive to anyone.

Collective, or common, property has the characteristic that more than one owner has. Therefore, it serves more than one item. The way to obtain the property can be by direct means; that is to say, that a good is assigned to more than one company. Or, on the contrary, the property is owned by a single personality but with public ownership.

Characteristics of the public common good

The main characteristic of the collective good is that the exclusion principle does not apply. That is, the enjoyment, use and utility that may be reported to a subject does not prevent the same services to other subjects. For example, justice, defense, free education or universal health.

  • The common goods are, for the most part, owned and owned by the public, that is, public goods.
  • They are generally financed through the resources of each of the members that make up the community.
  • They are universal in nature for all owners, and may have a limited use among them.
  • They can be owners directly, in which several personalities have a stake in the property, or in a second stay, through legal elements. For example, a person who has an interest in a company that in turn has part of the property of another company that provides services and has assets of general enjoyment.

However, a common good does not necessarily have to be publicly owned, but is related to the utility it gives to a set of beings with common rights. Imagine, for example, a fountain that supplies several terraces with different properties, but that belongs to all equally. In this case, the property would be collective to that group of owners, with the same rights, but nevertheless it would be forbidden to those individuals who do not have properties in the vicinity.

Example of collective good

For example, a house owned by 3 siblings would be a collective or common good.

However, the definition of a collective asset is usually more related to the assets owned by the Public Administration. That is to say, goods, such as a building, whose property is owned by a State or administration. Assets that the citizens and / or taxpayers of a demarcation own as long as they are part of that State. In addition, all of them receive service and use of that good.

Tags:  cryptocurrencies markets banks 

Interesting Articles

add