Calabresi on Merit Goods

Abstract

This paper discusses Judge Guido Calabresi's use of the concept of merit goods in his book The Future of Law and Economics (2016). It addresses the following questions:

(1) What does Calabresi’s conceptualisation of merit good share with the main lines of arguments in the literature for justifying state provision of merit goods?

(2) What is Calabresi’s contribution and how compatible is it with this literature?

(3) What is missing in Calabresi’s conceptualisation?

(4) On what basis can we differentiate merit goods from mere externalities that do not require public attention?

Keywords: Guido Calabresi, Richard A. Musgrave, merit goods, merit wants, Law & Economics

JEL Classification: K00, H40, H42, B29, B40