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Public economics textbooks often recommend that the government intervention in the economy should be focused on the provision of public goods and the management/regulation of

Public economics textbooks often recommend that the government intervention in the economy should be focused on the provision of public goods and the management/regulation of monopolies. Yet, it is often observed that many goods that should be publicly provided are privately provided (e.g., private, or blue guard security rather than policemen) and that many decisions that should be made by the private sector are being made by government (e.g., completely built cars cannot be imported, only knocked down or CKD cars or parts). Give a public economics/choice explanation of why governments sometimes fail to do what should be done by the public sector but seem to have more than enough energy to do or decide what are probably best done or decided by the private sector.

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