By Horst Hanusch (auth.), Prof. Dr. Horst Hanusch (eds.)
Read or Download Anatomy of Government Deficiencies: Proceedings of a Conference held at Diessen, Germany July 22–25, 1980 PDF
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Extra resources for Anatomy of Government Deficiencies: Proceedings of a Conference held at Diessen, Germany July 22–25, 1980
2. Non-Market Success and Failure Market failures of various sorts provide the principal rationale (some would say "ration· alization") for attempted non-market (that is, government) remedies. In both cases, the "failures" - whether market or non-market - should be evaluated in terms of the same criteria of success: allocative efficiency 1, and distributional equity judged according to some explicit social or ethical norm. Thus, non-market remedies "fail" to the extent they, too, result in outcomes that depart from the efficiency or distributional goals by which market outcomes are judged to fail.
Egative externalities associated with an actual meltdown as X, then the perceived externalities, X, given these probability assumptions, would be Xai103J •. 99 x 102) - tim,es the true value, Xa. according to eq. (3). 5. Non-Market Supply There are also distinguishing characteristics pertaining to the supply side of non-market activities: ( 1) Non-market outputs are often hard to define in principle, ill-defined in practice, and extremely difficult to measure as to quantity, or to evaluate as to quality.
For Friedman and "Free to Choose" (FTC). ) impairs efficient resource use, impedes economic progress, and restricts social mobility and political freedom. In analyzing the structure and operation ("anatomy" and "physiology") of government deficiencies, it is instructive to compare and explain the sharply contrasting views of the market and of government represented by Friedman and Galbraith, and by FTC and AOU, respectively. The pro-market view, represented by Friedman and FTC, is based on an idealized model of a perfectly competitive market, tending toward general equilibrium at a macroeconomic level and marginal optimization at a microeconomic level.