The recently concluded General Elections had all political parties presenting their manifestos. There were many interesting proposals. Some fractions wanted to cut the defense budget. Others proposed better ways of running our healthcare system. Many felt that we could do more to help the poor. Whether or not these suggestions will work in isolation or even as a whole is highly debatable. What it has led me to realise is that for every decision made there has to be a compromise. The role of a good government is to find that balance and work towards the greater good of all its citizens. And a large part of that lies in allocating resources for the production of public and merit goods. Public Goods Students of economics would be familiar with the term ‘public goods’. Typical examples of public goods are national defense and street lighting. These are goods provided without profit ......