scholarly journals Negative externalities of government

2021 ◽  
pp. 215-238
Author(s):  
William Barnet II ◽  
Walter Block ◽  
Jerry Dauterive
Keyword(s):  
Market Failure ◽  
Jel Classification ◽  
Enterprise System ◽  
Market Failures ◽  
Free Enterprise ◽  
Negative Externalities ◽  
Government Failure ◽  
Palabras Clave ◽  
Good Market ◽  
El Sistema

The neoclassical economists have long used the concept of «market failure» as a stick with which to beat up on the free enterprise system. Foremost amongst these so called «market failures» are «negative externalities.» These are defined as action that negatively affects third parties, other than via price. The key example is pollution. These dismal scientists never mention, however, the fact that government itself is the source of negative externalities itself, particularly through the socialization of risk; e.g., social security, Medicare, Medicaid and other forms of socialized medicine, unemployment insurance, welfare, etc. The present paper is devoted to explicating and elaborating upon the concept of government failure. Key words: Externality, public good, market failure, neighborhood effect, government failure, moral hazard. JEL Classification: Q5; D62; H41. Resumen: Los economistas neoclásicos han utilizado durante mucho tiempo el concepto de «fallo de mercado» como un bastón con el que golpear sobre el sistema de libre empresa. Principalmente entre los llamados «fallos de mercado» se encuentran las «externalidades negativas». Estas se definen como acciones que afectan negativamente a terceras partes por vías distintas a los precios. El ejemplo clave es la polución. Sin embargo, estos «tristes» científicos nunca mencionan el hecho de que el propio gobierno es la fuente de las propias externalidades negativas, particularmente a través de la socialización del riesgo; por ejemplo, la seguridad social, los seguros médicos estatales, los seguros de enfermedad, los seguros de desempleo, la asistencia social, etc. El presente trabajo se dedica a explicar y ampliar el concepto de fallo del gobierno. Palabras clave: Externalidad, bien público, fallo de mercado, efecto de vecindario, fallo del gobierno, riesgo moral. Clasificación JEL: Q5; D62; H41.

Designing Ecolabels In Order To Mitigate Market Failures

2005 ◽  
Vol 16 (4) ◽  
pp. 411-430 ◽  
Author(s):  
Douadia Bougherara ◽  
Gilles Grolleau
Keyword(s):  
Asymmetric Information ◽  
Qualitative Study ◽  
Public Goods ◽  
Market Failure ◽  
Jel Classification ◽  
Market Failures ◽  
Cognitive Support

For the market for ecofriendly characteristics of agrofood products to function effectively, means of mitigating asymmetric information, informational overload and public goods properties are necessary. Ecolabel success requires a design and an implementation capable of mitigating simultaneously these three sources of market failures. Our contribution differs from many to date by (1) introducing and analyzing the informational overload as a source of market failure and (2) considering the ecolabel, not only as a tool to re-establish information symmetry between the producer and consumer but also as a way to overcome informational overload and public goods problems. We analyze how these sources of market failures may be mitigated by providing information perceived as trustworthy, tying credence and public attributes to verifiable and private attributes and designing the ecolabel as a cognitive support for consumers. We provide an exploratory qualitative study of several French ecolabels to stress how they more or less succeed in attenuating the identified sources of market failures. Several implications for policymakers and managers are stressed. We conclude by suggesting several issues requiring further investigations. JEL Classification Numbers: D11, D21, L15

scholarly journals Government Failures in Development

1990 ◽  
Vol 4 (3) ◽  
pp. 9-23 ◽  
Author(s):  
Anne O Krueger
Keyword(s):  
Developing Countries ◽  
Market Failure ◽  
The Political ◽  
Economic Policies ◽  
Market Failures ◽  
Political Arena ◽  
Positive Theory ◽  
Government Behavior ◽  
Government Failure ◽  
The Government

By the 1970s and early 1980s, governments in most developing countries were mired down in economic policies that were manifestly unworkable. Whether market failures had been present or not, most knowledgeable observers concluded that there had been colossal government failures. In many countries, there could be little question but that government failure significantly outweighed market failure. This essay focuses on insights relating directly to government behavior affecting economic activity and economic growth in developing countries. It briefly examines each of the following questions: 1) What is “the government”? 2) What is the comparative advantage of government? 3) What are the dynamics of government intervention? 4) Can a positive theory of political behavior be formulated that will help explain when and how alternative policies will evolve in the political arena?

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.

scholarly journals Which Product Will Survive To Be Standard?: Technology Adoption And The Role Of Governments

2011 ◽  
Vol 4 (2) ◽  
Author(s):  
Akinori Tomohara
Keyword(s):  
Evolutionary Game Theory ◽  
Technology Diffusion ◽  
Market Failure ◽  
Network Externalities ◽  
Evolutionary Game ◽  
Jel Classification ◽  
Market Failures ◽  
Font Size ◽  
Recent Developments

<p class="MsoBodyText2" style="text-align: justify; line-height: normal; margin: 0in 0.6in 0pt 0.5in; tab-stops: .5in;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">While several surveys on technology diffusion have been undertaken, few attempts have been made to synthesize existing research to provide a framework for examining the role of governments.<span style="mso-spacerun: yes;">&nbsp; </span>Is government intervention really required to remedy market failures caused by network externalities?<span style="mso-spacerun: yes;">&nbsp; </span>This paper covers recent developments in this area, focusing on works in stochastic evolutionary game theory.<span style="mso-spacerun: yes;">&nbsp; </span>We relate the results of equilibrium selections to the role of governments. JEL classification: L1, L53 Keywords: Path Inefficiency; Market Failure; Network Externalities</span></span></p>

scholarly journals El impacto de la dolarización en América Latina

2021 ◽  
pp. 83-110
Author(s):  
Miguel Ángel Echarte Fernández
Keyword(s):  
El Salvador ◽  
Gold Standard ◽  
Jel Classification ◽  
Palabras Clave ◽  
El Sistema ◽  
Balance Of Trade ◽  
America Latina ◽  
The Impact ◽  
Positive Results ◽  
Flexible Exchange Rates

This article discusses the impact of dollarization in Ecuador, Panama and El Salvador as well as the Argentine convertibility system. We found that the adoption of a more stable currency has had positive results in those countries. Key words: Dollarization, Inflation, Central Bank, Balance of Trade, Gold Standard, Cash Ratio, Exports, Flexible Exchange Rates. JEL Classification: E42, E44, E58. Resumen: En este artículo se analizan los efectos de la dolarización en Ecua - dor, Panamá y El Salvador, y se contrasta con el sistema de convertibilidad argentino. Observamos que la adopción de una moneda estable ha tenido resultados positivos para estos países. Palabras clave: Dolarización, Inflación, Banco Central, Balanza Comercial, Patrón Oro, Coeficiente de Caja, Exportaciones, Tipos de Cambio Flexibles. Clasificación JEL: E42, E44, E58.

Promotion, turnover and preemptive wage offers

Humanomics ◽  
2006 ◽  
Vol 22 (3) ◽  
pp. 133-138
Author(s):  
Walter Block ◽  
Robert A. Lawson
Keyword(s):  
Critical Analysis ◽  
Market Failure ◽  
Future Research ◽  
Enterprise System ◽  
Free Enterprise ◽  
Main Method ◽  
Content Type ◽  
The Public ◽  
Cast Doubt ◽  
Practical Implications

PurposeThe reason for writing the paper is to cast doubt on the claim that the informational asymmetries uncovered by Bernhardt and Scoones constitute a market failure.Design/methodology/approachThe main method used is to quote these authors, and then critically comment upon their views. The theoretical scope of the paper is the premise that markets are efficient, effective and ethical.FindingsIt was found in the course of the work that Bernhardt and Scoones were in error in their contentions.Research limitations/implicationsSuggestions for future research; this paper is but the tip of the iceberg in terms of claims that markets perform badly, and are hence in need of governmental rectification. This entire literature cries out for more critical analysis.Practical implicationsThe public policy and practical implications emanating from this paper is that laissez‐faire capitalism is the best way to organize an economy.Originality/valueWhat is new in the paper is that the work of Bernhardt and Scoones on informational asymmetries has not before been subject to critical analysis from the perspective of advocates of the free enterprise system. This is valuable, in that, when claims are subject to critique, they become more reliable. It is only through dialogue and debate of this sort that one can get that in closer to the truth.

scholarly journals Análisis de la política monetaria del BCE desde un punto de vista austriaco

2021 ◽  
pp. 57-82
Author(s):  
María Méndez Escandón
Keyword(s):  
Monetary Policy ◽  
Jel Classification ◽  
Economic Thought ◽  
Sustainable Growth ◽  
Austrian School ◽  
Economic Policies ◽  
The Great Recession ◽  
Palabras Clave ◽  
El Sistema ◽  
Policy Measures

Seven years after the outset of the Great recession, the debate continues as to which economic policies are necessary to return to a state of balanced and sustainable growth. In this context, many voices demand more active participation of central banks, including more forceful implementation of monetary policy measures. The Austrian school of economic thought maintains that monetary and financial systems play a key role, but it does so from a foundation that is radically opposed to that of other economic schools. The goal of this article is to analyze Euro Area monetary policy, not only highlighting the benefits of the Euro for its member countries, but also emphasizing the fundamental errors in foundation and design of this policy from the perspective of the Austrian school. Key words: Monetary Policy, Economic and Monetary Union,The Austrian School of Economics, Jesus Huerta de Soto. JEL Classification: B53, E4, E5, E52, E58, E61. Resumen: Tras casi siete años desde el inicio de la Gran Recesión, el debate sobre cuáles son las medidas de política económica necesarias para volver a una senda de crecimiento equilibrado y sostenible todavía no ha cesado. En este contexto, son muchas las voces que reclaman un papel más activo de los bancos centrales, con medidas de política monetaria más contundentes. La Escuela Austriaca de Economía considera que el sistema monetario y finan - ciero juega un papel fundamental, pero lo hacen con unos fundamentos radi-calmente opuestos a los del resto de escuelas. El objetivo de este artículo es analizar la política monetaria única, llamando la atención sobre los bene-ficios que el euro ha supuesto para los países miembros, al mismo tiempo que se destacan los errores de diseño y fundamentación que tal sistema pre - senta desde un punto de vista de la economía austriaca. Palabras clave: Política Monetaria, Unión Económica y Monetaria, Escuela Austriaca de Economía, Jesus Huerta de Soto. Clasificación JEL: B53, E4, E5, E52, E58, E61.

State-owned company: Detection Zone of Government Failure or market Failure?

2015 ◽  
pp. 45-79 ◽  
Author(s):  
A. Radygin ◽  
Y. Simachev ◽  
R. Entov
Keyword(s):  
Property Rights ◽  
Market Failure ◽  
Private Property ◽  
Institutional Environment ◽  
Market Failures ◽  
Detection Zone ◽  
Government Failure ◽  
Private Property Rights ◽  
Owned Company ◽  
Direct Government

This article analyzes state-owned companies and their place in the structure of market interactions in the context of modern approaches to the study of government failures and market failures, as well as the conditions of the system of private property rights rooting. Besides the general theoretical consideration of the costs of functioning of state-owned companies, the authors refer to the specific experience of the Russian economy, consistently analyzing the opportunities and palliatives of the current privatization policy, the experience of establishment and the risks of functioning of state corporations. Particular attention is paid to the problem of limited motivation to improve the institutional environment in general and, on the contrary, the expansion of the practice of direct government intervention in order to solve the problems of economic development. The authors also consider specific areas where there is a restriction of private property rights in connection with the expansion of the public sector, de jure and de facto.

scholarly journals El fletamento de mercancías en la carrera de Indias (1560-1622): introducción a su estudio

2021 ◽  
pp. 161-207
Author(s):  
Sergio M. Rodríguez Lorenzo
Keyword(s):  
Key Words ◽  
Economic History ◽  
Economic Freedom ◽  
Jel Classification ◽  
Economic Activities ◽  
Maritime Law ◽  
American Colonies ◽  
Palabras Clave ◽  
El Sistema

The carrera de Indias constitutes the maritime-mercantile system that communicates Spain with his American colonies. The whole Europe takes part in this route under the jurisdiction of the Catholic Monarchy. Up to Mexico, Peru or the Carib there arrives many goods that sell for silver and other precious products. There are many economic activities that give form to this maritime route; but the base of everything is the shipping business. The contract that regulates the relations between merchants and masters of the vessels is the freightment. The present work analyzes the different clauses of the freightments of goods and defends that, in spite of Crown’s interventions, the carrera de Indias was an area of economic freedom, been ruled by the private negotiation and the institutional spontaneity of the maritime law. Key words: Economic history, shipping business, freightments, mercantilism, maritime law. JEL Classification: L260, N010, N730, N830. Resumen: La carrera de Indias constituye el sistema marítimo-mercantil que comunica a España con sus colonias americanas. Toda Europa participa en esa ruta bajo jurisdicción de la Monarquía Católica. Hasta México, Perú o el Caribe se llevan mercancías que se venden por plata y otros productos preciosos. Son muchas las actividades económicas que dan forma a esta ruta marítima; pero la base de todo es el negocio naviero. El contrato que regula las relaciones entre comerciantes y señores de naos es el fletamento. El presente trabajo analiza las diferentes cláusulas de los fletamentos de mercancía y defiende que, a pesar de la intervención de la Corona, la carrera de Indias fue un ámbito de libertad económica, regido por la negociación privada y la espontaneidad institucional propia del derecho marítimo. Palabras clave: Historia económica, negocio naviero, fletamentos, mercan-tilismo, derecho marítimo. Clasificación JEL: L260, N010, N730, N830.

scholarly journals El sistema educativo español: un enfoque austriaco

2021 ◽  
pp. 83-117
Author(s):  
Carlos Arenas Laorga
Keyword(s):  
Education System ◽  
Jel Classification ◽  
University Education ◽  
Complex Issue ◽  
Role Of The State ◽  
Palabras Clave ◽  
Failure State ◽  
El Sistema ◽  
History Of

This paper aims to study the influence of the role of the state in non-university education in Spain. In order to analyze a complex issue such as this, we begin with the history of interventions in education to provide context to the study of current problems of interventionism in the education system. Several of these problems are funding, school breakdown, or the lack of freedom within families. After analyzing some of the problems that our education system suffers, we will propose a number of improvements based on successful educational measures that have been applied in other countries according to the Austrian School theories. These improvements provide quantitative data that prevent falling into pure ideology of an issue currently so delicate in Spain. Key words: Education System, School Failure, State and Education, PISA Report, Mckinsey Report, Education Funding. JEL Classification: A21, B53, I21, I22. Resumen: En este trabajo se pretende estudiar la influencia del papel del estado en la educación no universitaria de España. Para poder analizar un tema complejo como este partimos de la historia de las intervenciones en educación, para afrontar después, con mayor criterio, el estudio de los pro-blemas actuales del intervencionismo en el sistema educativo. Parte de estos problemas son la financiación, el fracaso escolar o la falta de libertad de las familias. Tras analizar algunos de los problemas de los que adolece nuestro sistema de enseñanza, propondremos una serie de mejoras basándonos en medidas educativas de éxito aplicadas en otros países y en la teoría de la Escuela Austriaca, aportando datos cuantitativos que sirven de referencia para no caer en la ideologización de un tema proclive a ello y tan delicado en España en estos momentos. Palabras clave: Sistema Educativo, Fracaso Escolar, Estado y Educación, Informe PISA, Informe Mckinsey, Financiación de la Educación. Clasificación JEL: A21, B53, I21, I22.

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