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government failure : ウィキペディア英語版
government failure

In the analysis of regulation, government failure (or non-market failure) is imperfection in government performance.〔Orbach, Barak (2013). "What Is Government Failure," ''Yale Journal on Regulation Online'', 30, pp. (44-56. )〕 The phrase "government failure" emerged as a term of art in the early 1960s with the rise of intellectual and political criticism of regulation. Building on the premise that the only legitimate rationale for government regulation was
market failure, economists advanced new theories explaining why government interventions in markets were costly and tend to fail.〔Id.〕 For example, it was argued that government failure occurs when government intervention causes a more inefficient allocation of goods and resources than would occur without that intervention. In not comparing realized inadequacies of market outcomes against those of potential interventions, one writer describes the "anatomy" of market failure〔Bator, Francis M. (1958). "The Anatomy of Market Failure," ''Quarterly Journal of Economics'', 72(3), pp. (351-379. )〕 as providing "only limited help in prescribing therapies for government success."〔Wolf, Jr., Charles (1979). "A Theory of Nonmarket Failure: Framework for Implementation Analysis," ''Journal of Law and Economics'', 22(1), pp. (107 )-139.〕 Government failures, however, occur also whenever the government performs inadequately, including when it fails to intervene or does not sufficiently intervene.〔Orbach (2013).〕 Some use the phrase "passive government failure" to describe the government's failure to intervene in a market failure that would result in a socially preferable mix of output.〔Weimer and Vining (2004). ''Policy Analysis and Concepts''. 4th edition p. 206.〕 Just as with market failures, there are different kinds of government failures that describe corresponding economic distortions.
== Overview ==
An early use of "government failure" was by Ronald Coase (1964) in comparing an actual and ideal system of industrial regulation:〔Coase, Ronald (1964). "The Regulated Industries: Discussion," ''American Economic Review'', 54(2), p. 195, as quoted in Oliver E. Williamson (2002), "The Lens of Contract: Private Ordering," ''American Economic Review'', 92(2), pp. (438 )-443.〕
:Contemplation of an optimal system may provide techniques of analysis that would otherwise have been missed and, in certain special cases, it may go far to providing a solution. But in general its influence has been pernicious. It has directed economists’ attention away from the main question, which is how alternative arrangements will actually work in practice. It has led economists to derive conclusions for economic policy from a study of an abstract of a market situation. It is no accident that in the literature...we find a category "market failure" but no category "government failure." Until we realize that we are choosing between social arrangements which are all more or less failures, we are not likely to make much headway.
Roland McKean used the term in 1965 to suggest limitations on an invisible-hand notion of government behavior.〔McKean, Roland N. (1965), "The Unseen Hand in Government," "American Economic Review," 55(3), pp, (496 )-506.〕 More formal and general analysis followed〔• Charles J. Wolf, (1979). "A Theory of Non-Market Failure," ''Journal of Law and Economics'', 22 (1), pp. (107 )–139.
  • _____ (2003). ''Markets Or Governments: Choosing between Imperfect Alternatives'', MIT Press. (Description ) and chapter-preview (links. )
  • Mrinal Datta-Chaudhuri (1990). "Market Failure and Government Failure." ''Journal of Economic Perspectives'', 4(3), pp. (25-39 ).
  • Aidan R. Vining and David L. Weimer (1990). "Government Supply and Government Production Failure: A Framework Based on Contestability," ''Journal of Public Policy Journal of Public Policy'', 10(1), pp 1-22. (Abstract. )
  • Joseph E. Stiglitz (1998). "The Private Uses of Public Interests: Incentives and Institutions," ''Journal of Economic Perspectives'', 12(2), pp. (3-22. )
  • Richard O. Zerbe Jr. and Howard E. McCurdy (1999). "The Failure of Market Failure," ''Journal of Policy Analysis and Management'', 18(4), pp. 558–578. (Abstract. ) Reprinted in ''Economic Efficiency in Law and Economics," pp. (164-87. )
  • Clifford Winston (2006). ''Government Failure versus Market Failure: Microeconomics Policy Research and Government Performance''. Brookings Institution Press. (Link. )
〕 in such areas as development economics,〔• Anne O. Krueger (1990). "Government Failures in Development," ''Journal of Economic Perspectives'', 4(3), pp. (9-23. )
  • Eduardo Wiesner (1998). "Transaction Cost Economics and Public Sector Rent-Seeking in Developing Countries: Toward a Theory of Government Failure," in E. Wiesner and R. Picciotto, ed. ''Evaluation and Development: The Institutional Dimension'', pp. (108-23. ) World Bank.〕 ecological economics,〔Thomas Andersson (1991). "Government Failure – the Cause of Global Environmental Mismanagement," ''Ecological Economics'', 4(3), pp. 215–236. (Abstract. )
political science,〔• Julian Le Grand (1991). "The Theory of Government Failure," ''British Journal of Political Science'', 21(4), pp. (423-442. )
  • Eduardo Wiesner (1998). "Transaction Cost Economics and Public Sector Rent-Seeking in Developing Countries: Toward a Theory of Government Failure," in E. Wiesner and R. Picciotto, ed. ''Evaluation and Development: The Institutional Dimension'', pp. (108-23. ) World Bank.
political economy,〔• Oliver E. Williamson (1995). "The Politics and Economics of Redistribution and Inefficiency," ''Greek Economic Review'', December, 17, pp. 115-136, reprinted in Williamson (1996), ''The Mechanisms of Governance'', Oxford University Press, ch. 8, pp. (195- ) 218.
   • Sturzenegger, Federico, and Mariano Tommasi (1998). ''The Polítical Economy of Reform'', MIT Press. (Description ) and links to (chapter-previews ) and ("failure". )
   • Sharun W. Mukand (2008). "policy reform, political economy of," ''The New Palgrave Dictionary of Economics'', 2nd Edition. (Abstract. )
   • Buchanan James M. (2008). "public debt," The New Palgrave Dictionary of Economics'' , 2nd Edition''The New Palgrave Dictionary of Economics'' (2008), 2nd Edition.(Abstract. )〕 public choice theory,〔• Buchanan James M. (1983). "The Achievement and the Limits of Public Choice in Diagnosing Government Failure and in Offering Bases for Constructive Reform," in ''Anatomy of Government Deficiencies'', ed. Horst Hanusch (Berlin: Springer-Verlag, 1983), pp. 15–25.
  • Gordon Tullock ''et al.'' (2002), ''Government Failure: A Primer in Public Choice'', Cato Institute. (Description ) and scroll-down for (preview. )〕 and transaction-cost economics.〔Richard O. Zerbe Jr. and Howard E. McCurdy (1999). "The Failure of Market Failure," ''Journal of Policy Analysis and Management'', 18(4), pp. 558–578. (Abstract. ) Reprinted in Zerbe (2001), ''Economic Efficiency in Law and Economics," pp. (164-87. )〕
The idea of government failure is associated with the policy argument that, even if particular markets may not meet the standard conditions of perfect competition required to ensure social optimality, government intervention may make matters worse rather than better.
Just as a market failure is not a failure to bring a particular or favored solution into existence at desired prices but is rather a problem which prevents the market from operating efficiently, a government failure is not a failure of the government to bring about a particular solution but is rather a systemic problem which prevents an efficient government solution to a problem. The problem to be solved need not be a market failure; sometimes, some voters may prefer a governmental solution even when a market solution is possible.
Government failure can be on both the demand side and the supply side. Demand-side failures include preference-revelation problems and the illogics of voting and collective behaviour. Supply-side failures largely result from principal–agent problem.〔Connolly, S. & Munro, A. (1999). 'Public Choice', Chapter 8 in ''Economics of the Public Sector'', Pearson, Harlow, Essex.〕

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