6 Pages Posted: 28 Dec 2011
Date Written: December 28, 2011
The deviations from great prices in the market are responsible for poor allocation of resources: this failure in terms of allocative efficiency can justify a State intervention in the economy. Sometimes it was noted that public intervention is more expensive than market failure: in other words can fail the market, but can fail even public intervention.
Keywords: market failure, State intervention
JEL Classification: D40, D52, H11
Suggested Citation: Suggested Citation