Risk and the State: How Economics and Neuroscience Shape Political Legitimacy to Address Geopolitical, Environmental, and Health Risks for Sustainable Governance

Economics demonstrates how markets can serve as remarkably efficient institutions in allocating scarce resources. At the same time, incomplete information generates prices that can lead to a mis-allocation, producing in some cases too little while in others too much of a good. Matters become more complicated when striking a balance is influenced by our perceptions of risk. Here, neuroscience provides insights into which, and what kind of public sector interventions one should consider. Whil...