The Market Failure Approach to Regional Economic Development Policy

Timothy Bartik ()

Economic Development Quarterly, 1990, vol. 4, issue 4, 361-370

Abstract: This article argues that regional economic development policies should aim to correct failures of private markets to achieve efficiency. Market failures that may rationalize regional economic development policies include involuntary unemployment, involuntary underemployment, fiscal benefits, agglomeration economies, research spillovers, imperfect human capital markets, imperfect information markets, and imperfect financial markets. Development policies to correct market failures may be evaluated by the nonmarket benefits created for society. The market failure approach focuses policymakers' attention on areas where private market performance is weakest and allows comparisons of development policies.

Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/089124249000400406 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:ecdequ:v:4:y:1990:i:4:p:361-370

DOI: 10.1177/089124249000400406

Access Statistics for this article

More articles in Economic Development Quarterly
Bibliographic data for series maintained by SAGE Publications ().