IBE316-4 - IBE 316 Economic Policy Stiglitz Economics of the Public Sector Chapter 4 Market Failure Keisuke OTSU Sophia University FLA Spring 2008

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
IBE 316 Economic Policy Stiglitz: Economics of the Public Sector Chapter 4: Market Failure Keisuke OTSU Sophia University FLA Spring 2008 OTSU (Sophia University FLA) IBE 316 Spring 2008 1 / 18
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Overview Overview Chapter 3 says in a perfect world, market economy leads to Pareto e¢ ciency Chapter 4 explains how and why the government intervenes in the market when the market fails to produce goods e¢ ciently even when they are e¢ cient OTSU (Sophia University FLA) IBE 316 Spring 2008 2 / 18
Background image of page 2
Overview Focus Questions 1 What are the principal reasons why market fail to produce e¢ cient outcomes? 2 What role does government play in making it possible for markets to work at all? 3 resources, even when it is Pareto e¢ cient? What are merit goods? What is the government role in redistribution? 4 What is the "market failure" approach to the role of government? What are alternative perspectives in thinking about the role of government? OTSU (Sophia University FLA) IBE 316 Spring 2008 3 / 18
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Property Rights and Contract Enforcement property rights and enforce contracts Property rights: the right to posses and exchange an asset includes intellectual property rights without property rights, incentives to save and invest are weaker Contract enforcement: to force people to honor contracts the level of enforcement is di/erent across countries OTSU (Sophia University FLA) IBE 316 Spring 2008 4 ± 18
Background image of page 4
Property Rights and Contract Enforcement Comparison of contract enforcement across countries: How long does it
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/22/2011 for the course ECON 316 taught by Professor Keisukeotsu during the Spring '08 term at Sophia University.

Page1 / 18

IBE316-4 - IBE 316 Economic Policy Stiglitz Economics of the Public Sector Chapter 4 Market Failure Keisuke OTSU Sophia University FLA Spring 2008

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online