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The Evaluation of Public Policy: Normative Economic Theories of Government Failure

Dollery, Brian E. & Worthington, Andrew C. (1996) The Evaluation of Public Policy: Normative Economic Theories of Government Failure. Journal of Interdisciplinary Economics, 7(1), pp. 27-39.

Abstract

Conventional economic analysis of public policy has been traditionally conducted in the conceptual context of the theory of market failure. Either a paretian or pigouvian analytical framework enabled analysts to assess the economic efficiency of market outcomes, and prescribe appropriate government intervention where necessary. No corresponding theoretical structure existed to facilitate an equivalent investigation into the economic efficiency of nonmarket outcomes. However, quite distinct from public choice theory, a normative theory of government failure has emerged to form a conceptual analogue to the market failure paradigm. At present this embryonic theory of government failure has three strands: Wolf's theory of nonmarket failure, Le Grand's theory of government failure, and Vining and Weimer's theory of government production failure. The present paper evaluates the extent to which this seminal literature can assist in the design of rational public policy processes.

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ID Code: 2791
Item Type: Journal Article
Keywords: Market failure, non, market failure, public policy
ISSN: 0260-1079
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200) > Public Economics- Taxation and Revenue (140215)
Australian and New Zealand Standard Research Classification > STUDIES IN HUMAN SOCIETY (160000) > POLICY AND ADMINISTRATION (160500) > Public Policy (160510)
Australian and New Zealand Standard Research Classification > STUDIES IN HUMAN SOCIETY (160000) > POLITICAL SCIENCE (160600) > Comparative Government and Politics (160603)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 1996 (please consult author)
Deposited On: 05 Dec 2005
Last Modified: 05 Jan 2011 23:26

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