Editing Public good (section)

=== Lindahl tax ===
A [[Lindahl tax]] is a type of taxation brought forward by [[Erik Lindahl]], an economist from Sweden, in 1919. His idea was to tax individuals for the provision of a public good according to the marginal benefit they receive. Public goods are costly and eventually someone needs to pay the cost.<ref>{{Cite journal|last1=Gunnthorsdottir|first1=Anna|last2=Houser|first2=Daniel|last3=McCabe|first3=Kevin|date=2007|title=Disposition, history and contributions in public goods experiments|url=http://www.sciencedirect.com/science/article/pii/S0167268105002532|journal=Journal of Economic Behavior & Organization|language=en|volume=62|issue=2|pages=304–315|doi=10.1016/j.jebo.2005.03.008|issn=0167-2681}}</ref>  It is difficult to determine how much each person should pay. So, Lindahl developed a theory of how the expense of public utilities needs to be settled. His argument was that people would pay for the public goods according to the way they benefit from the good. The more a person benefits from these goods, the higher the amount they pay. People are more willing to pay for goods that they value. Taxes are needed to fund public goods and people are willing to bear the burden of taxes.<ref>{{Cite web|author=Investopedia Staff|title=Lindahl Equilibrium Definition|url=https://www.investopedia.com/terms/l/lindahl-equilibrium.asp|access-date=2020-10-28|website=Investopedia|language=en}}</ref> Additionally, the theory dwells on people's willingness to pay for the public good. From the fact that public goods are paid through taxation according to the Lindahl idea, the basic duty of the organization that should provide the people with this services and products is the government.<ref name=":1">{{Cite web|title=Public Good {{!}} Learning to Give|url=https://www.learningtogive.org/resources/public-good|access-date=2020-10-28|website=learningtogive.org}}</ref>