The Market Failures Approach (MFA) is one of the leading theories in contemporary business ethics. It generates a list of ethical obligations for the managers of private firms that states that they should not create or exploit market failures because doing so reduces the efficiency of the...

Contrary to a frequent contention, systems competition cannot work when governments respect the Subsidiarity Principle. The principle implies that governments step in where markets fail. Reintroducing markets through the back door of systems competition will again result in market failure. Three...

Calls for reforming the civil rights enforcement regime often focus on individual government officers. Recent years have brought demands to abolish qualified immunity—a defense that protects individual officers from liability so long as they did not violate clearly established law—and to end...

Typically, health insurance premiums depend at least in part on the previous costs of the insuring firm, a factor termed 'experience rating'. This link between health status and future premiums raises concerns of market failure, since it limits the ability of firms to insure the price at which...

Dieses Interview gibt Auskunft über die normative Ambivalenz des zivilgesellschaftli-chen Sektors. Einerseits erfüllen NGOs wichtige wirtschaftliche und politische Funktio-nen. Sie stellen Güter und Dienstleistungen bereit. Und sie engagieren sich in der öffent-lichen Interessenvertretung....

[Vorwort:] Seit den 1990ern haben die Verwaltungen in Deutschland Stück für Stück damit begonnen, marktwirtschaftlich orientierte Koordinationsmechanismen einzuführen. Diese Entwicklung führte zu zwiespältigen Reaktionen. Von Seiten der Politik und von einigen Teilen des Verwaltungssektors...

The proposed regulation launched by the European Commission on the gatekeepers' regime under the name of the Digital Market Act and the Digital Services Act represents an important change in the regulation and commitments of the platforms that initially control the market, or have that capacity,...

Circular Economy literature recommends longer lasting products, in order to reduce pollution from extraction, production, and disposal. Our economic analysis finds conditions where consumers choose lives that are too short – a “durability gap”. Then policies targeting durability raise...

Executive summary:Traditional economic models of how to manage environmental problems relating to renewable natural resources, such as fisheries, have tended to recommend either government regulation or privatisation and the explicit definition of property rights.These traditional models ignore...

A number of market failures have been associated with R&D investments and significant amounts of public money have been spent on programs to stimulate innovative activities. In this paper, we review some recent microeconomic studies evaluating effects of government sponsored commercial R&D. We...

Dieses Interview gibt Auskunft über die normative Ambivalenz des zivilgesellschaftli-chen Sektors. Einerseits erfüllen NGOs wichtige wirtschaftliche und politische Funktio-nen. Sie stellen Güter und Dienstleistungen bereit. Und sie engagieren sich in der öffent-lichen Interessenvertretung....

This Article argues that the norms and legal practices of global finance in the arenas of sovereign debt and private wealth have led to a significant market failure, in particular the over-supply of sovereign borrowing and a related misallocation of global capital away from its most productive...

We build a three-period model to investigate market failures in the market-based financial system. Institutional investors (IIs), such as insurance companies and pension funds, have liabilities offering guaranteed returns and operate under a risk-sensitive solvency constraint. They seek to...

This paper reviews both the theoretical underpinnings and the empirical evidence in support of the under-provision of training. While there is little if any evidence in support of underprovision because of liquidity constraints to the demand side of the market, there is evidence that employers...

We examine constraints to adoption of new technologies in the context of hillside irrigation schemes in Rwanda. We leverage a plot-level spatial regression discontinuity design to produce 3 key results. First, irrigation enables dry season horticultural production, which boosts on-farm cash...

The privatization of social services is being increasingly discussed. The social services market is characterized by multiple market failures, including informational asymmetries, agency problems, externalities, and distributional concerns. Consumers may care as much or more about quality of...

The objective of this paper is to show how the same market failures that contribute to urban sprawl also contribute to urban blight. The paper develops a simple dynamic model in which new suburban and older central-city properties compete for mobile residents. The level of housing services...

This paper studies the evolution of hurricane insurance in Florida over the last decades. Hurricanes (and other natural catastrophes) are typically referred to as “uninsurable” risks. The more exposed property owners find it difficult to obtain insurance cover from the private market and/or...

This paper analyzes an early modern German economy to test alternative theories about guilds. It finds little evidence to support recent hypotheses arguing that guilds corrected market failures relating to product quality, training, and innovation. But it finds that guilds were social networks...

The paper explores the consequences of macroeconomic policy for labor market outcomes in the presence of frictions. It shows how policy may be useful in overriding frictions, as well as how it might generate adverse outcomes. The analysis looks at the main tools of macroeconomic policy and...

While the old systems competition took place within closed borders, globalisation has brought about a new type of systems competition that is driven by the mobility of factors of production. The new systems competition is likely to lead to the erosion of the European welfare state, induce a race...

This paper characterizes the probability of a market failure defined as the default of two or more globally systemically important banks (G-SIBs) in a small interval of time. The default probabilities of the G-SIBs are correlated through the possible existence of a market-wide stress event. The...

Regulations are an indispensable part of an economy and are proven to generate a significant impact on the economic, environment and social landscape. Through an extensive survey of literature and empirical study, the paper contrasts the benefits and costs arising in the light of the imposition...

Studie mit finanzieller Unterstützung der IHK für München und Oberbayern im Rahmen des Vertrags zur Erstellung volkswirtschaftlicher Studien. Die Bedeutung der Datenökonomie für die Entwicklung der Wirtschaftsleistung in Deutschland und Europa ist unbestritten. In verschiedenen Märkten...

This paper discusses some transport economic dimensions of Lucians "Dialogues of the Dead". Using the service "soul transportation to Hades" as an example, we discuss the transport economic notions revealed in these dialogues, and we draw the parallels to modern economic and political debates....

According to statute, securities exchanges play an essential role in ensuring compliance with applicable laws and industry standards. Long imagined as unique in their institutional capacity to bring traders together, collect information and exclude problem participants from the marketplace,...

The financial crisis of 2008 highlighted the debilitating effect that a disruption in the banking sector can have on the macro-economy. Not surprisingly, therefore, preserving banking sector stability has occupied center stage in regulatory and policy making circles. As well, the popular...

Does deregulation of bank entry enhance bank stability or exacerbate bank fragility? Since the theoretically predicted effect of deregulation of bank entry on bank failures is ambiguous, this question has to be answered empirically. In this paper, we analyze the impact of deregulation of entry...

When competitors engage in unrestrained copying of each others' intangible products, the structure can resemble a prisoner's dilemma in which free choice leads to unnecessarily low individual payoffs and low social welfare. There are many ways to avoid these low payoffs, such as contract...

Within the field of innovation studies, researchers have identified several market failures that hamper investment in R&D, innovation and growth in a market economy. Several policies such as government subsidies, tax deductions, soft loans, and public venture capital provided to firms that...

This paper discusses some transport economic dimensions of Lucians "Dialogues of the Dead". Using the service "soul transportation to Hades" as an example, we discuss the transport economic notions revealed in these dialogues, and we draw the parallels to modern economic and political debates....

We wish to "quibble" with Murphy (2019). We mean this literally. That is, we are in strong and enthusiastic agreement with virtually everything he writes therein, except for one point: we think him guilty of allowing the cloven hoof of market failure into the Austrian tent. Our purpose in the...

Market completeness has important implications for household behavior. I firmly reject complete markets for smallholders but am unable to do so for non-smallholders. This leads to important differences in production behavior: smallholders reallocate labor across activities less in response to...

Studie mit finanzieller Unterstützung der IHK für München und Oberbayern im Rahmen des Vertrags zur Erstellung volkswirtschaftlicher Studien. Die Bedeutung der Datenökonomie für die Entwicklung der Wirtschaftsleistung in Deutschland und Europa ist unbestritten. In verschiedenen Märkten...

Regulations are an indispensable part of an economy and are proven to generate a significant impact on the economic, environment and social landscape. Through an extensive survey of literature and empirical study, the paper contrasts the benefits and costs arising in the light of the imposition...

I consider the effect of caring, empathy, altruism or positive reciprocity towards others - which I collectively call positive preference interdependence (PPI) - on the internalization of interpersonal externalities and on the level of private contributions to the provision of public goods. I...

A national buyout plan of eco-destroyers -- Needs and wants -- Housing: the case for "in kind" government ownership -- "In kind" health -- Taxing the rich: the time has come -- The corporate elite and the "magic" of the market -- Labor as a political force? -- Towards a democratic economy.