This article discusses market and non-market failures. The first section explores the various implications of three ideas: recognition of the scope of departures from the optimal in private choice, deference to voluntary action as a ‘default option’, and acknowledgement of the pervasiveness of government failure. When these three ideas are combined, they provide a template for responsible policy analysis.
Keywords: market failures; non-market failures; scope of departures; private choice; voluntary action; pervasiveness; responsible policy analysis
Article. 12834 words.
Subjects: Politics ; Public Policy ; Comparative Politics
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