COST OF TRANSACTION AND A THEORY OF PUBLIC POLICY

COST OF TRANSACTION AND A THEORY OF PUBLIC POLICY

IN THE ECONOMIC WORLD OF ARROW DEBREU MARKET EQUILIBRIUM THEORY, MARKETS SUPPORT A PARETO-OPTIMAL ALLOCATION OF RESOURCES, SO THERE CAN BE NO RATIONALE FOR GOVERNMENT INTERVENTION IN MARKETS ON THE GROUNDS OF EFFICIENCY. HOWEVER, THIS THEORETICAL WORLD OMITS COST OF TRANSACTION WHICH PLAY SOME PART...

Full description

Saved in:
Bibliographic Details
Published in:Review of social economy Vol. 44; no. 3; pp. 238 - 250
Main Author: MC CAIN, R.A.
Format: Journal Article
Language:English
Published: 01-12-1986
Subjects:
ECONOMIC THEORY
MARKETING SYSTEM
MODELING, MODELS
PUBLIC POLICY
RESOURCE ALLOCATION
STATES
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:IN THE ECONOMIC WORLD OF ARROW DEBREU MARKET EQUILIBRIUM THEORY, MARKETS SUPPORT A PARETO-OPTIMAL ALLOCATION OF RESOURCES, SO THERE CAN BE NO RATIONALE FOR GOVERNMENT INTERVENTION IN MARKETS ON THE GROUNDS OF EFFICIENCY. HOWEVER, THIS THEORETICAL WORLD OMITS COST OF TRANSACTION WHICH PLAY SOME PART IN TWO THEORIES OF THE PUBLIC ECONOMY. ONE OF THESE THEORIES DERIVES FROM THE WORK OF RONALD COASE. THE OTHER THEORY, WHICH HAS BEEN LITTLE NOTICED, IS DUE TO BURHAM BECKWITH THESE THEORIES DRAW ROUGHLY OPPOSITE CONCLUSIONS ON THE DESIRABILITY OF GOVERNMENT INTERVENTION IN MARKETS.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
content type line 23
ObjectType-Feature-2
ISSN:0034-6764