Markets or Governments: Choosing between Imperfect Alternatives

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A theory of market failures is well established in economics, but the same has not been true for the study of nonmarket failures. Markets or Governments remedies this situation by providing a formal theory of nonmarket failure, analyzing such problems as redundant costs, monopoly, frequency of unanticipated externalities, and bureaucracy in such nonmarket institutions as foundations, universities, and government. This new edition updates the data and results contained in the first edition and includes references ...
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Overview

A theory of market failures is well established in economics, but the same has not been true for the study of nonmarket failures. Markets or Governments remedies this situation by providing a formal theory of nonmarket failure, analyzing such problems as redundant costs, monopoly, frequency of unanticipated externalities, and bureaucracy in such nonmarket institutions as foundations, universities, and government. This new edition updates the data and results contained in the first edition and includes references and applications of the theory to the ongoing process of system transformation in Russia, Ukraine, and Eastern Europe. The discussion of earlier literature that is relevant to the theory of nonmarket failure has been expanded.

Charles Wolf, Jr., is Dean of the RAND Graduate School of Policy Studies and Director of RAND's research program in International Economic Policy.

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Product Details

  • ISBN-13: 9780262231725
  • Publisher: MIT Press
  • Publication date: 9/2/1993
  • Series: Rand Research Study Series
  • Edition description: Second Edition
  • Edition number: 2
  • Pages: 256
  • Product dimensions: 21.00 (w) x 14.00 (h) x 1.00 (d)

Meet the Author

Charles Wolf, Jr., is Dean of the RAND Graduate School of Policy Studies and Director ofRAND's research program in International Economic Policy.

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Table of Contents

Figures and Tables
Preface
Acknowledgments
1 The Cardinal Economic Choice 1
2 Market Failure 17
3 Nonmarket Failure: The Demand and Supply Conditions 35
4 Nonmarket Failure: Types, Sources, and Mechanisms 59
5 Nonmarket Failure and the Analysis of Public Policy 103
6 Comparing Market and Nonmarket Alternatives: General Considerations 117
7 Comparing Market and Nonmarket Alternatives: Empirical Aspects 137
8 Conclusions: The Choice between Markets and Governments 155
Appendix A: Nonmarket Demand, Supply, and Equilibria 191
Appendix B: A Survey of Comparisons between Public and Private Service Delivery 201
Bibliography 213
Index 225
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