POLI 101 Lecture Notes - Market Failure, Pareto Efficiency, Boogie 2Nite
Document Summary
Be able to summarize; and explain major points if asked. Liberal and conservative ideologies use broad values (e. g. equality versus liberty), and very general ideas (unregulated markets work well or work poorly). Economic analysis much more specific ideas and criteria: markets work well in some circumstances, not others (market failure). The circumstances, at a conceptual level, are precisely defined. Fail, i. e. , when missing some of the well-defined conditions for perfect competition. Liberalism vs conservatism is not irrelevant; but plays a more limited role. General characterization: economists have developed a body of theory that is often used to analyze merits of policy. Less so in recent years, because politics is more ideological. Limitations of economic analysis limited specificity of its judgments: often the decision about particular policies is indefinite. Applying the principles may require difficult further judgments especially about what effects a policy has (and how significant). It makes some controversial assumptions, i. e. about basic goals, and about how people behave.
