Market Failure, Government Failure, Leadership and Public Policy
Brian Dollery () and
Joe L. Wallis
Additional contact information
Joe L. Wallis: Otago University, New Zealand
Journal of Interdisciplinary Economics, 1997, vol. 8, issue 2, 113-126
The economic rationale for government intervention in a market economy has traditionally been provided by the theory of market failure. This article reviews the market failure paradigm in the light of the more recent literature on government failure. One implication of the theory of government failure is that a contractualist approach to public service reform is the best method of improving public sector productivity. However, we argue that this view overlooks the potentially crucial role of leadership in public agencies and the ways in which transformational leadership can stimulate efficiency. We argue that communitarian conceptions of leadership can be incorporated into conventional economic approaches, and that this can have significant implications for public policy formulation.
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sae:jinter:v:8:y:1997:i:2:p:113-126
Access Statistics for this article
More articles in Journal of Interdisciplinary Economics
Bibliographic data for series maintained by SAGE Publications ().