The Significance of Public Goods in Market Failure Debates

2020 ◽  
pp. 27-46
Author(s):  
Kubra Onder ◽  
Muhammet Sahin
Keyword(s):  
Public Goods ◽  
Market Failure ◽  
Economic Thought ◽  
Neoclassical Economic ◽  
Main Stream ◽  
Economic Approach ◽  
Failure Theory ◽  
The Subject ◽  
The Government ◽  
Public Economy

Before the emergence of the neoclassical economic approach, the idea that market instabilities are temporary and markets are spontaneously able to reach equilibrium was prevalent. However, with the neoclassical economic thought the idea that market economy alone is far from attaining equilibrium and there is a need for public economy. This is also known as market failure theory. There are many reasons of market failure. One of them is public goods. Public goods are generally regarded as an example of market failure and seen as a problem requiring government intervention. However, when main stream public goods theories are analyzed in-depth, it is seen that there is no agreement on the properties of public goods which may create a reason to the government presentation and public presentation is not approved in general. Therefore, the aim of this study is to make a comparative analysis of the approaches of different economics schools of thought which have contributions to the subject of public goods.

scholarly journals Una crítica a la teoría de los fallos del mercado desde la perspectiva de la Escuela Austriaca

2021 ◽  
pp. 133-159
Author(s):  
Ángel Martín Oro
Keyword(s):  
Public Goods ◽  
Imperfect Competition ◽  
Market Failure ◽  
Welfare Economics ◽  
Perfect Competition ◽  
Market Failures ◽  
Failure Theory ◽  
Palabras Clave ◽  
Competitive Model ◽  
Main Criticism

In this paper, we present a critical analysis of the standard market failure theory, one of the most important pillars of economic interventionism. This theory justifies state interference when markets do not produce so-called optimal outcomes; being based on two fundamental concepts of neoclassical welfare economics, namely, Pareto efficiency and perfect competition. The main criticism is directed at the theoretical framework in which is based on, through the contributions of the Austrian School of Economics. To accomplish that, after revising the basics of the market failure theory, we will put forward an alternative concept of efficiency, as well as questioning the suitability of the perfect competitive model. Next, we will reconsider theoretically the traditional market failures, that is, monopolies, public goods and externalities’ problems. This analysis is accompanied by historical cases that illustrate our criticism. Key words: Market failure, welfare economics, efficiency, imperfect competition, public goods, externalities. JEL codes: B53, D60, H00. Resumen: En este trabajo se realiza un análisis crítico de la teoría tradicional de los fallos del mercado, uno de los pilares más importantes del intervencionismo económico. Esta teoría vendría a justificar la interferencia estatal en los casos en que el mercado no produce resultados óptimos; estando apoyada en dos conceptos fundamentales en la economía del bienestar neoclásica: la eficiencia paretiana y el modelo de competencia perfecta. La principal crítica se realizará al marco teórico en el que se inserta, a partir de las aportaciones de la Escuela Austriaca de Economía. Para ello, tras describir a grandes rasgos la teoría de los fallos del mercado, expondremos un concepto alternativo de eficiencia, y nos cuestionaremos la validez teórica del modelo perfectamente competitivo. A continuación, reconsideraremos desde un punto de vista teórico los fallos del mercado tradicionales, esto es: monopolios, bienes públicos y externalidades. Este análisis se acompañará de casos históricos que ilustren y apoyen nuestra crítica. Palabras clave: Fallos del mercado, economía del bienestar, eficiencia, competencia imperfecta, bienes públicos, externalidades. Códigos JEL: B53, D60, H00.

The Role of Government in a Liberal Market Economy

2018 ◽  
pp. 53-61
Author(s):  
Claude Joseph
Keyword(s):  
Public Choice ◽  
Market Failure ◽  
Government Intervention ◽  
Rational Behavior ◽  
Market Failures ◽  
Role Of Government ◽  
Failure Theory ◽  
Theoretical Perspectives ◽  
The Government

This essay is a critical assessment of the market failure theory and public choice theory. While the market failure theory provides a justification for government intervention in the economy, the public choice theorists are very skeptical about the role of government as a corrector of market failures. Since government failures can be worse than market failures, the imperfections in the market process, they argue, do not necessarily call for government intervention. These two theoretical perspectives, notwithstanding their difference, do share something in common. Both assume that individuals are self-interested. This essay contends that a shift from rational self-interested behavior to bounded-rational behavior provides a less contested role for the government. With bounded-rational behavior, the state should no longer be viewed as a mere surrogate of the market, but as “a choice architect,” “an entrepreneur,” and “a manager of conflict.”

scholarly journals Fiscal Thoughts and Their Evolution before the 19th Century

2020 ◽  
Vol 7 (1) ◽  
pp. 315-319
Author(s):  
Qing Han
Keyword(s):  
Public Finance ◽  
19Th Century ◽  
Interdisciplinary Research ◽  
Market Failure ◽  
The Political ◽  
Failure Theory ◽  
New Ideas ◽  
Similarities And Differences ◽  
The Government ◽  
The 19Th Century

The tradition of English classical public finance thinks the government are out of the society and can intervene it. Base on former thought and the market failure theory, the mainstream public finance has a clear tendency to oppose the market and the government. This approach not only ignored the political functions of government but also cannot explain the PPP and NPM. The cameralism’s view of the government provided new ideas for explaining this issue. Through the analysis and comparison of the financial thoughts of Britain and Germany before the 19th century, this paper clarifies the evolutionary logic of British fiscal thought, compares the similarities and differences between the British and German financial thoughts. Besides this paper also discusses the roots of these two traditions view of the government. The fiscal theory of cameralism not only reflects the subjective initiative of the government but also conforms to the reality of our country. These traditions interdisciplinary research tendency should also be re-emphasized.

scholarly journals The resort areas of the Adriatic Coast of Croatia: the peculiarities of the development of tourism in the region

2018 ◽  
Keyword(s):  
Tourism Development ◽  
Main Stream ◽  
Scientific Methods ◽  
Virgin Land ◽  
The North ◽  
Adriatic Coast ◽  
The Subject ◽  
The Rich ◽  
Business Structures ◽  
The Government

The article is devoted to the investigation of the resort potential of the Adriatic coast of Croatia. Tourism is one of the main branches of Croatia’s economy which contributes the most part of the profits to this country’s budget. Among the most popular types of tourism is tourism in order to relax and get new impressions. And the government of Croatia, and business-structures as well, demonstrated the ability of using the tourist potential of the country very effectively. This experience can become very useful for many states of the world. The subject of the investigation is the resort areas of the Adriatic coast of Croatia. The goal of the article is to analyze the peculiarities of the development of tourism of the Adriatic coast. To achieve this goal the author raises the following tasks: to reveal the reasons of the transformation of the Adriatic coast into the main resort region of Croatia; to determine the specificity of the tourism development in this region; to point out the role and place of tourism branch in the country’s economy. In this investigation the following scientific methods are used: the analysis, the synthesis, the induction, the deduction. The results of the investigation enable the author to arrive at the following conclusions. The key role in the transformation of the Adriatic coast into the main resort area of Croatia was played by its high tourism and recreational potential. In the course of tourism development the rich historical and cultural heritage is effectively used, as well as natural virgin land fund of this region. The features of the development of tourism in the region are revealed. Identified trends in the development of tourist business in Croatia. The peculiarity of the tourism development of the Adriatic coast is the opportunity of uniting several kinds of tourism. The main stream of tourists to Croatia consist, first of all, of tourists from the EU countries and from the North America states. The profits from tourism amount about 25 per cent of the GDP of the country.

scholarly journals An Analysis of Government Interventions in Addressing Market Failures Caused by Non-Excludable and Non-Rivalrous Public Goods Based on COVID-19 Vaccination Cases

2021 ◽  
Vol 4 (5) ◽  
pp. 89-92
Author(s):  
Wenqing Chen
Keyword(s):  
Public Goods ◽  
Market Failure ◽  
Free Rider ◽  
Market Failures ◽  
Vaccination Programs ◽  
Government Interventions ◽  
Private Goods ◽  
Free Rider Problem ◽  
Intervention Measures ◽  
The Government

The non-excludable and non-rivalrous characteristics of public goods distinguish them from private goods. The existence of these two characteristics leads to the “free rider problem” and the variation problem, making the market supply less than the actual demand, thus causing market failure. The government should therefore intervene against this impact. At the beginning of 2020, the global outbreak of the novel COVID-19 brought significant harm to various countries, races, and groups of people. In the second half of 2020, several companies developed vaccines, which are able to fundamentally block the transmission of the virus. However, as vaccines have been reducing the severity of the epidemic in certain regions, the situation somewhat reflects non-excludability and non-rivalry, in which before officially being listed in vaccination programs, the society may have the thought of “vaccination would reduce the risk of transmission; thus, I can enjoy the reduced risk of everyone being vaccinated without paying for it.” For this reason, most countries have been purchasing vaccines for the public through government appropriations to solve the free-rider problem. It can be said that in the face of market failure caused by public goods, the government should carry out timely intervention measures, including taxation and government appropriation, to avoid negative impacts from the characteristics of public goods.

Grosser Wert und wenig Geld? Über die Honorierung von Waldleistungen | Highly Valuable But Hardly Remunerative? On Compensating Forest Benefits

1999 ◽  
Vol 150 (2) ◽  
pp. 41-48 ◽  
Author(s):  
Ingrid Kissling-Näf
Keyword(s):  
Social Change ◽  
Property Rights ◽  
Social Welfare ◽  
Public Goods ◽  
Market Failure ◽  
Public Funding ◽  
Forest Products ◽  
Marketing Strategies ◽  
Economic Perspective ◽  
Financial Compensation

Forests provide people with a variety of services and products (protection against avalanches, walking trails, etc.). Most forest services and products are not provided by markets and the extent of their availability is often guaranteed by public funding. In this context, the question arises whether the high benefits derived from forests could not be converted into cash more easily. Looking at various explanations for the market failure (externalities, public goods, property rights) possible marketing strategies for forest products and services and how they could optimize social welfare are investigated. Although general compensation criteria are not available, economic concepts (type of externality, scarcity, etc.) provide a first clue as to the necessity of compensation. However, mention must be made that compensation is always the result of a social agreement, and financial compensation as well as property rights are subject to social change. From a political and an economic perspective the payment of compensation for forest benefits is limited.

Construction of an Achievement Test in General Science for Class IX Based on NCERT Syllabus

2018 ◽  
Vol 6 (26) ◽  
Author(s):  
Sailendra Bhuyan ◽  
Punita Borpuzari Deori
Keyword(s):  
Assessment Tool ◽  
Subject Area ◽  
Achievement Test ◽  
General Science ◽  
School Students ◽  
The People ◽  
The Subject ◽  
The Government ◽  
Time Changes ◽  
Teaching Learning

Achievement test is of very important assessment tool to evaluate the student’s current level of knowledge and skill acquired from classroom instruction. This test is designed to evaluate the student’s level of achievement in a particular subject for a particular class prescribed under the board or the university. In other words, to assess how much the pupils have achieved the educational objectives in teaching learning process at the end of the course and if achieved then to what extent, it has been achieved. Achievement tests are proved to be very helpful in various ways to the people who are involved in the field of education such as the teachers, the administrators, the planners, to the parents as well as for the students. The teacher very carefully develops and conduct achievement test in the class which enable the teacher to get an overall idea of the progress or the level of achievement of his students in the subject area. The teacher can determine the pupil’s strength and weakness in the subject area. So, based on this the teacher can take necessary remedial instructional strategies for the betterment of the pupil’s progress. In the same time, it also provides feedback for the teaching efficiency of the teacher.As with the time changes there have been many educational reforms taken place and in between syllabus had also been changed under different Boards of Studies. In order to maintain uniform standard of education the Government has formulated a policy to implement NCERT syllabus common to all School Boards throughout the country and accordingly the State Board of Secondary Education, Assam (SEBA) follow NCERT syllabus and to evaluate students’ achievement in terms of the policy formulated by the Board. Till now, no any standardized achievement test has been conducted for the secondary school students of Assam. Therefore, the investigators felt to construct and standardize an achievement test in the subject General Science which will definitely help in educational research.

The 2016 Police and Crime Commissioner elections

2017 ◽  
Vol 16 (2) ◽  
pp. 41-54 ◽  
Author(s):  
Peter Joyce
Keyword(s):  
Public Awareness ◽  
Primary Source ◽  
Source Material ◽  
Content Type ◽  
The Public ◽  
The Social ◽  
Key Issues ◽  
The Subject ◽  
The Government

Purpose The purpose of this paper is to analyse the 2016 elections for Police and Crime Commissioners (PCCs) and to compare them with those that took place in 2012. It seeks to evaluate the background of the candidates who stood for office in 2016, the policies that they put forward, the results of the contests and the implications of the 2016 experience for future PCC elections. Design/methodology/approach This paper is based around several key themes – the profile of candidates who stood for election, preparations conducted prior to the contests taking place, the election campaign and issues raised during the contests, the results and the profile of elected candidates. The paper is based upon documentary research, making particular use of primary source material. Findings The research establishes that affiliation to a political party became the main route for successful candidates in 2016 and that local issues related to low-level criminality will dominate the future policing agenda. It establishes that although turnout was higher than in 2012, it remains low and that further consideration needs to be devoted to initiatives to address this for future PCC election contests. Research limitations/implications The research focusses on the 2016 elections and identifies a number of key issues that emerged during the campaign affecting the conduct of the contests which have a bearing on future PCC elections. It treats these elections as a bespoke topic and does not seek to place them within the broader context of the development of the office of PCC. Practical implications The research suggests that in order to boost voter participation in future PCC election contests, PCCs need to consider further means to advertise the importance of the role they perform and that the government should play a larger financial role in funding publicity for these elections and consider changing the method of election. Social implications The rationale for introducing PCCs was to empower the public in each police force area. However, issues that include the enhanced importance of political affiliation as a criteria for election in 2016 and the social unrepresentative nature of those who stood for election and those who secured election to this office in these contests coupled with shortcomings related to public awareness of both the role of PCCs and the timing of election contests threaten to undermine this objective. Originality/value The extensive use of primary source material ensures that the subject matter is original and its interpretation is informed by an academic perspective.

scholarly journals The Farmer's Law

1910 ◽  
Vol 30 (1) ◽  
pp. 85-108 ◽  
Author(s):  
Walter Ashburner
Keyword(s):  
Ninth Century ◽  
Difference Of Opinion ◽  
The Subject ◽  
Legislative Activity ◽  
The Government

The origin of the little code for the government of Byzantine agriculturists, which is known in the manuscripts as the Farmer's Law (νόμος γϵωργικός), has occasioned some difference of opinion among the learned men who have dealt with it. The greatest authority on Byzantine law, Zachariä von Lingenthal, changed his mind on the subject. He began by thinking it the work of a private hand—the compiler of the Appendix Eclogae—and assigning it to the eighth or ninth century (Historiae Juris Graeco-Romami Delineatio, p. 32). It was put together, in his opinion, partly from the legislation of Justinian and partly from local custom. According to his last view (Geschichte des Griechisch-römischen Rechts, 3rd ed. pp. 249 sqq.) it is a product of the legislative activity of the emperors Leo and Constantine and was enacted about the year 740 A.D.

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