Public Plazas in New York City

Crime, violence, and drugs have always been prevalent in New York City.  Within the past few years, the public has been demanding more urban parks to improve the community.  In an article by the New York Times, the author discusses how new public plazas, commissioned by the New York City Department of Transportation, have been improving the living conditions of the city by reducing crime and increasing profits of surrounding businesses.  Public plazas are gaining popularity in Los Angeles, San Francisco, and Philadelphia as well.

People prefer these urban parks over traditional parks because they want to be able to relax and enjoy the hustle and bustle of the city simultaneously.  The parks are an impure public good in that they are non-exclusionary, however, they are only partially non-rival because as long as there is space, people can enjoy it.  The parks must be provided by the government because of the free rider problem which occurs when people are reluctant to contribute to the purchase of a good that provides group benefits.  Public goods are under provided if the government does not step in because the free rider problem leads to an outcome that is not allocatively efficient.