Re-thinking market failure in the light of the imperfect state

Re-thinking market failure in the light of the imperfect state

We propose a formal re-definition of the concept of market failure based on the idea of the imperfect state. In the neoclassical taxonomy, a decentralized regime of exchange is a market failure if its laissez-faire equilibrium solution is welfare-dominated by a technically feasible alternative. If t...

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Bibliographic Details
Published in:The Philippine Review of Business and Economics Vol. LIII, No. 2 (December 2016), p. [28]-46.
Main Authors: Fabella, Raul V. (Author), Fabella, Vigile Marie (Author)
Format: Analytics
Language:English
Published: 2016.
Subjects:
Capitalism.
Business cycles.
Welfare economics.
Economic policy.
Externalities (Economics)
Online Access:https://forms.gle/KZjBv7aRtY6jiL5E9