Argument Against Public Support: Government Failures

Pierre-André Buigues and Khalid Sekkat

Chapter 3 in Industrial Policy in Europe, Japan and the USA, 2009, pp 20-28 from Palgrave Macmillan

Abstract: Abstract Government failures refer to situations where government intervention prevents the economy from achieving ‘the first best’. As for the market, government failures may occur because of information imperfection. They may also occur because of conflict with other public policies or self-interest seeking by government officials. While the first two arguments are inherent in many public policies (including public support to business) the third is more likely with public support to business. Since government officials have the power to grant concrete benefits to specific actors in the economy, they may be prone to corruption.

Keywords: Trade Policy; Public Support; Industrial Policy; Competition Policy; Import Tariff (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-24435-1_3

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DOI: 10.1057/9780230244351_3

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