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Samuelson rule

An equation describing the set of Pareto-efficient allocations in an economy with public goods.

Samuelson rule

The marginal rate of substitution should be interpreted as a measure of marginal benefit, and the marginal rate of transformation as a measure of marginal cost. The marginal benefits are summed since an additional unit of the public good benefits all consumers.

Reference: Oxford Press Dictonary of Economics, 5th edt.