Failures of the State: Theory and Policy
32 Pages Posted: 24 Feb 2013
Date Written: Decvember 17, 2012
Abstract
The article deals with the evolution of approaches in modern economic theory to the problem of “failures of the state”. This approach, which has developed in opposition to concepts of “market failure”, can be seen as a search for a new strategy of political and economic analysis of mechanisms of resource allocation and of historical social institutions and their effect on the efficiency of economic processes. Special attention is paid to the problem of information retrieval as a starting point for the analysis of the economic functions of the public sector, to ways of funding state undertakings, to the impact of rent-seeking behavior, to the role of the political process, and to negative externalities such as lack of coordination and the presence of the state in the economy in general. An interdisciplinary approach to “failures of the state” takes into account the influence of legal norms and institutions on the nature of allocation of public resources, as illustrated by the examples from the modern Russian economy.
Keywords: failures of the state, public policy, public choice, allocational efficiency, information, privatization
JEL Classification: B20, D02, D60, K40, L30, P20
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Budget Institutions and Fiscal Performance in Latin America
By Alberto F. Alesina, Ricardo Hausmann, ...
-
Comparative Politics and Public Finance
By Torsten Persson, Gérard Roland, ...
-
Separation of Powers and Accountability: Towards a Formal Approach to Comparative Politics
By Torsten Persson, Gérard Roland, ...
-
The Size and Scope of Government: Comparative Politics with Rational Politicians
By Torsten Persson and Guido Tabellini
-
Endogenous Political Institutions
By Philippe Aghion, Alberto F. Alesina, ...
-
Endogenous Political Institutions
By Philippe Aghion, Alberto F. Alesina, ...
-
Endogenous Political Institutions
By Philippe Aghion, Alberto F. Alesina, ...
-
Budget Institutions and Fiscal Performance in Latin America
By Alberto F. Alesina, Ricardo Hausmann, ...