December 28, 2009

New on EconTalk: Market Failure and Government Failure


I've been a subscriber of the EconTalk series of podcasts maintained by George Mason University's Russ Roberts. EconTalk has been a source of interesting and intellectual discussions about relevant economic issues for me, so it's about time I help promote this website.

In particular, the latest podcast is Brookings Institution's Clifford Winston on "Market Failure and Government Failure." The standard case has always been that markets sometimes fail, and because of this, there is a need for government to step in and correct the failures. But then again, governments also fail and are most of the time imperfect. Therefore, it is always the case that when you talk about market imperfections, government failures are also part of the discussion. I think this is the reason why the economics field of public choice theory exists starting with the "father of public choice theory" and continuing with great economists James M. Buchanan and Gordon Tullock. Buchanan also won a Nobel Prize in economics for his work in public choice theory.