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LESSONS OF THE LIGHTHOUSE: GOVERNMENT OR PRIVATE PROVISION OF GOODS

NCJ Number
143588
Journal
Journal of Legal Studies Volume: 22 Issue: 1 Dated: (January 1993) Pages: 47-72
Author(s)
D E van Zandt
Date Published
1993
Length
26 pages
Annotation
This analysis of the provision of lighthouse services concludes that it is impossible to make a clear distinction between the private provision and the government provision of goods and services and that discussions that assume a clear distinction impede understanding of how goods and services are provided in the real world.
Abstract
Coase studied the provision of lighthouse services in Great Britain from 1513 to 1989 and concluded that lighthouse services, which others had described as a quintessential government service, were actually provided by private enterprise rather than government for an extensive period of human history. However, the government had a substantially greater role in the provision of lighthouse services than Coase suggested. Even when private parties provided the capital for lighthouses, the government provided several services beyond those provided to providers of other goods and services. Thus, the terms "government" and "private" are too vague and unspecified to be useful. Instead, the provision of all goods and services in organized society involves some governmental involvement. The lighthouse was a case in which the specific nature of the problems posed, the wider legal rules, and the available technology all helped determine the institutional form of the service. Thus, what is important is to understand the nature of the government's involvement in the provision of specific goods and services. Footnotes

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