Public Goods and Private Communities: The Market Provision of
Social Services A Valuable Analysis of Public Goods and Public
Finance MARCH 01, 1995 by ROY CORDATO The primary purpose of
academic programs in urban economics is to train central
planners. Traditionally college courses in state and local
public finance and urban economics have rationalized everything
that local governments do, while invoking elaborate formulations
about how these governments might do what they do more
“efficiently.” Dr. Fred Foldvary’s new book, Public Goods and
Private Communities, turns the standard model of urban economics
and local public finance on its head. He first argues that the
economic theory of public goods, which supposedly “justifies”
government provision of many goods and services, is irreparably
flawed. He then argues that most if not all of the services that
local governments provide can be, and are, provided more
efficiently through private contractual arrangements. Courses in
public finance all begin by discuss