Knowledge Externalities as Commons: A Critical Analysis of Public Expenditure on Education
Public expenditure on education is still a subject of debate whereas conventional economists state that governments must spend on education, because it generates positive externalities. This context is based on a consideration of knowledge externalities as public goods; hence, government intervention is advised to correct the market failure of knowledge externalities. However, recent studies on knowledge, knowledge externalities, and social learning processes state that the contention of conventional economists is very simple solution to complex problems like what of knowledge externalities. Thus, basing on context of knowledge as complex common resource and recent studies on knowledge externalities, this article urges that: i) Knowledge externalities are complex commons and collective action with public policy in central is necessary to solve the social dilemmas related to them and, ii) Public expenditure is allocated on education not only by the factor of positive externalities generated but also by being complex commons constituent of peer production and learning society. Thus, intervention of government in terms of public expenditure should be done in collective action means.
Keywords - Knowledge Externalities, Knowledge Externalities as Commons, Complexity of Knowledge Externalities.