By Horst Hanusch (auth.), Prof. Dr. Horst Hanusch (eds.)
Read Online or Download Anatomy of Government Deficiencies: Proceedings of a Conference held at Diessen, Germany July 22–25, 1980 PDF
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Additional info for Anatomy of Government Deficiencies: Proceedings of a Conference held at Diessen, Germany July 22–25, 1980
Sample text
It is worth emphasizing that these demands depend as much on public perceptions of the shortcomings, as on the shortcomings themselves. Moreover, because of the difficulty of accurately measuring these market failures, substantial divergences between perceptions and realities may persist for extended periods. It thus becomes of central importance for the theory of non-market failure to consider the process by which public perceptions of market failures are formed, a point we will return to later.
9. Public Choice and Institutional Reform Why did the normative principles of classical political economy come to be forgotten in the late 19th and early 20th centuries? In what respects is it accurate to state that Public Choice amounts to an indirect "rediscovery" of these principles? A bit of history is helpful here, and in particular it is useful to recall that the late 19th and early 20th centuries were also described by the practical realization of the "democratic ideal", and specifically by the rapid expansion of the voting franchise.
As the largest of among all non-market organizations, government engages in four types of activities: ( 1) providing regulatory services (environmental regulation, radio and TV licensing, food and drug regulation, interstate commerce regulation), (2) pro· ducing "pure" public goods (national defense, crime prevention and maintenance of public order, space research and development); (3) producing quasi-public goods (education, postal services, health research); and (4) administering transfer payments (federal, state, and local welfare programs, social security, veterans' benefits).