The most important of feature of the in-pure public goods and services, which bear the characteristics of both private and public goods, is that they extend externality. External economies come out as a result of real or judicial person’s production or consumption decisions that affect other individual or establishments’ utility or costs positively or negatively. It is commonly known that in market economies the goods and services which extend positive externalities are produced under the socially required level where as the goods and services which extend negative externalities are over produced. In such cases, as some of stability targets like optimal distribution of resources and income distribution are influenced negatively, governments try to intervene market mechanism in order to internalize the externalities. In this study we define pure and in-pure public goods and examine the studies on the theoretical structure and categorization of externality concept as well as internalizing the externalities
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