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" ... In theory there is just one caveat to this obvious point and that's when we come to consider externalities, or perhaps you'd prefer to think of the same thing as public goods. These are things that are underinvested in (in the case of public goods or positive externalites) and overproduced in the case of negative externalities. Obvious examples of these are things like public health measures. But even here Gates is still more efficient than government: I'm not, you're probably not but Gates still is, as we can see from the success his charitable efforts are having with malaria and vaccinations around the world. ... "