Public goods as drivers of growth and development

Abstract

This paper frames a broader reconstruction of the evolution of our understanding of the dynamics of an economy through the role assigned to a variety of Pure and Non Pure Public Goods(NPPGs) as development drivers and value creators. It outlinesthe convergence of two distinct, though major theoretical traditions: the theories of growth/development, on one side, and the debate over role and efficiency of State/Vertical Integrated Firms v/s Market in the provision of goods. Coase (1932) put forward a theory of why either one prevails, as a function of a broad category of transaction costs.