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Government Failure

Published on Nov 21, 2015

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PRESENTATION OUTLINE

REGULATORY CAPTURE

This is when an industry under the control of a government agency appear to operate in favour of the vested interest of producers rather than consumers.

DISINCENTIVES

This is where policy interventions lead to a loss of incentives either for consumers or producers.
Free market economists argue that attempts to redistribute income and wealth can damage work incentives.

INFORMATION FAILURES

Information Failure exists when some, or all, of the participants in an economic exchange do not have perfect knowledge