8 Public sector action may sometimes improve the market's efficiency and lead to an increase in the...

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8 Public sector action may sometimes improve the market's efficiency and lead to an increase in the community's welfare, all individuals considered. However, the political process is likely to conflict with ideal economic efficiency criteria when

(a) voters have little knowledge of an issue,

(b) special interests are strong, and/or

(c) political figures can gain. from following shortsighted policies.

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Essentials Of Economics

ISBN: 396414

2nd Edition

Authors: James D Gwartney; Richard Stroup; J R Clark

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