Roads, Public Goods, and Focal Points
The Answer Is Transaction Costs
00:00
The Importance of Public Goods
Roads by definition are not local. They're always a means for getting from one place to another. Roads will always be congested in any place where there is growth because people make location decisions based on the cost of commuting. So it's an interesting question to ask if roads should be publicly provided. Relatively, little of what government does is provide public goods.
Transcript
Play full episode
