How Advances in Technology Keep Reducing Interventionist Policy Rationales

Posted: 25 Aug 2017

See all articles by Eric Hammer

Eric Hammer

Hamline University

Fred E. Foldvary

Santa Clara University - Leavey School of Business - Economics Department

Multiple version iconThere are 2 versions of this paper

Date Written: July 28, 2015

Abstract

Rationales for government interventions in the market are typically based on theories of market failure set within a framework of fixed private-sector practices and technologies. However, continuous technological progress and entrepreneurial innovation are eroding the theoretical foundations of these policies, making them increasingly obsolete. This paper describes the four pillars of market failure doctrine and provides examples of how the market is using technology to solve problems previously considered to necessitate government intervention.

Keywords: technology, policy, property rights, market failure, information

JEL Classification: O33, H80

Suggested Citation

Hammer, Eric and Foldvary, Fred E., How Advances in Technology Keep Reducing Interventionist Policy Rationales (July 28, 2015). GMU Working Paper in Economics. Available at SSRN: https://ssrn.com/abstract=3025225

Eric Hammer (Contact Author)

Hamline University ( email )

1536 Hewitt Avenue
St. Paul, MN 55104
United States

Fred E. Foldvary

Santa Clara University - Leavey School of Business - Economics Department ( email )

500 El Camino Real
Santa Clara, CA California 95053
United States

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