Közjavakat

Közjavakat, meaning public goods in Hungarian, refers to economic goods that are characterized by non-excludability and non-rivalry. Non-excludability means that it is difficult or impossible to prevent individuals from consuming the good, even if they do not pay for it. Non-rivalry implies that one person's consumption of the good does not diminish another person's ability to consume it.

A classic example of a közjavát is national defense. Everyone within a nation benefits from its defense, regardless of whether they have contributed to its funding. Similarly, one person being protected does not reduce the protection available to another. Other examples include clean air, street lighting, and public broadcasting.

The nature of közjavakat presents a challenge for market provision. Because individuals can benefit from these goods without paying for them, there is a tendency for people to free-ride. This means that private firms may be unwilling to supply közjavakat because they cannot adequately charge consumers, leading to underproduction or no production at all. Consequently, government intervention is often necessary to ensure the provision of these goods. Governments typically fund közjavakat through taxation, making them available to all citizens. The efficient provision of közjavakat is a key concern in public economics.