Market Failure and the Role of Public Administration

Authors

Keywords:

Market failure, Market efficiency, Externalities, Regulation, social cost, Inflation, State, Intervention, Public goods, Incomplete markets

Abstract

The paper is about market failure and the influence of the institutional approach on it and it started from the idea of Veblen, a great 20th century economist, who presented institutionalism as an alternative to neoclassical economics. Based on neoclassical economics, in addition to explaining how a well-functioning market leads to the maximisation of welfare, an analysis of market failure was also made.

The objective of the paper is to analyse market failure based on institutional economics. In addition, it was examined to determine how institutional solutions can result in limiting certain types of market failure.

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Published

2022-12-30

Issue

No. 6 (2022): Romanian Journal of Public Affairs

Section

Articles

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to Cite

Market Failure and the Role of Public Administration. (2022). Romanian Journal of Public Affairs, 6, 23 – 38. https://rjpa.ro/index.php/rjpa/article/view/38