Merit good

The economics concept of a merit good (or worthy good), originated by Richard Musgrave (1957, 1959), is a commodity or service that it is judged an individual or society should have on the basis of some concept of benefit, rather than ability and willingness to pay. The term is, perhaps, less often used in the 2020s than it was during the 1960s to 1980s but the concept still motivates many economic actions by governments. Essentially, these are private goods that are subject to collective consumption.

Examples of merit goods include in-kind transfers to people such as the provision of food stamps to assist nutrition, the delivery of healthcare services to improve quality of life and reduce morbidity, and subsidized housing and education.

The opposite of a merit good is a demerit good, "a good or service whose consumption is considered unhealthy, degrading, or otherwise socially undesirable due to the perceived negative effects on the consumers themselves" (e.g., tobacco, alcoholic beverages, recreational drugs, gambling and junk food).