00 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
would find it difficult to collect adequate recompense because: 
of either technological or institutional peculiarities. So-called 
. collective goods » fall within this category. 
4. The gap between social value and market price men- 
tioned above may be due to external economies of many dif- 
ferent kinds, which deserve to be mentioned explicitly. One 
important category consists of external economies of consump- 
tion: types of consumption that are deemed to confer benefits 
on the community over and above those that are perceived 
by the individual consumer. Education is the leading example, 
but there are many other instances. Without government 
action, undesirably small quantities of such goods would be 
produced and consumed. The appropriate government action 
may take many forms: subsidization of production or con- 
sumption, or direct government provision, with or without 
charge. . 
, 5. Another type of external benefit is the development of 
economic skills. A government may undertake specific forms. 
of enterprise or enterprise in specific localities in order, to 
promote the growth of technical and managerial skills, i.e. to 
introduce modern industries into regions that lack them. 
6. In emerging economies, the government. frequently in- 
vests in « social overhead », roads, port facilities, urban hous- 
ing, and the like. The external economies sought in such: 
projects are reductions in operating costs in the private enter: 
prises that are hoped to follow. 
7. -Turning, now, from external econgmies, a frequent mo- 
tive for public investment is improvement in the distribution 
of income, either by reducing costs of inputs to impoverished 
sectors of the nation or by providing consumer goods at low 
prices to various low-income groups. Such subsidies in kind 
are often more feasible. administratively than direct transfer 
"3] Dorfman - pag. 
4