Economic Development as Coordination Problems

Kiminori Matsuyama

No 1123, Discussion Papers from Northwestern University, Center for Mathematical Studies in Economics and Management Science

Abstract: The economics of coordination failures is widely interpreted, both by its advocates and by its critics alike, as a call for more active government interventions in economic development. The goal of this paper is to explain that, contrary to the common perception, the logic of coordination failures does not justify policy activism, any greater role of the government in coordination.

Date: 1995-04
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