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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 mentioned
 above may be due to external economies of many different
 kinds, which deserve to be mentioned explicitly. One
important category consists of external economies of consumption:
 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 consumption,
 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 invests
 in « social overhead », roads, port facilities, urban housing,
 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 motive
 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.

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