session i public policy

8/12/2019 Session I Public Policy

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Public Policy

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GOVERNMENT AND POLICYMAKING

Public policy consists of all those

authoritative public decisions that

governments make.

The outputs of the political system

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GOVERNMENT AND WHAT IT DOES

Governments do many things.

Timeless: defense

Production of goods and servicesVaries from country to country

How much involvement

And in what sectors

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GOOD GOVERNANCE

Good governanceis an indeterminateterm used in international developmentliterature to describe how publicinstitutions conduct public affairs and manage

public resources. Governance is "the process of decision-making

and the process by which decisions areimplemented (or not implemented)". (UNESCAP)

The term governancecan apply to corporate,international, national, local governance or to theinteractions between other sectors of society.(UNESCAP)

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GOOD GOVERNANCE

The concept ofgood governanceoften emerges asa model to

compare ineffectiveeconomies orpolitical bodies with viable economies and politicalbodies.

The concept centers around the responsibility ofgovernments and governing bodies to meet theneeds of the masses as opposed to select groupsin society.

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QUOTE FROM FORMER CVCS SPEECH(SHRI. N. VITTAL) Since the last decade, the term

governance has come to

replace the terms management

or administration, as it betterdenotes the essence of running organizations and

managing resources for the overall public good.

Governance denotes the whole gamut of activitiesright from policy making at the highest level to the

delivery of goods and services to the citizens.

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CHARACTERISTICS OF GOODGOVERNANCE

United Nations has provided thefollowing eight characteristics:

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EXCERPTS FROM N. VITT LS(FORMER CVC)SPEECH

The present state of affairs in thecountry indicates that we fall shorton most of the criteria of goodgovernance.

It is paradoxical that while in terms of advancedparameters like strength of financial markets,business sophistication and technologicalreadinessIndia scores very high but, in terms of

basic services like health, education and publicadministrationwe fare poorly.

This highlights a serious anomaly in ourgovernance system especially with respect to the

delivery of services. 8


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PUBLIC PROCUREMENT ACCOUNTABILITY Public procurement in India constitutes about 28% of the GDP.

During the year 2008-09 about Rs. 12 lakh crore was spent by

Government of India and its PSUs on public procurement (GDP

of India during the period was Rs. 47 lakh crores).

Governments both at the central as well as state levels commit

a large portion of their budgets to procurement. Therefore anywastage or loss of tax payers money in public contracts due to

corruption fuels public anger, especially in an age of increased

availability of information along with demand for greater

transparency, equity and fairness.

As compared to procurements in the private sector,procurement in public sector is required to accord high priority

to accountabi l ity, transp arency and integr i ty. It has to be fair to allpotential participants.

Excerpts from the speech of Shri. Pradeep Kumar, CVC, at India

International Centre on 22nd August, 2012 9


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INDI S TR NSP RENCY

In Corruption PerceptionsIndex 2012, prepared by the

credible agency

Transparency International,

India has a poor rank of 94. It is worse than Botswana (30), Hungary (46),

Rwanda (50), and Cuba (58).

Unless urgent corrective measures are takenpeople may lose faith in the integrity institutions

and the governance structure.

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IMPERATIVES FOR STRENGTHENING PSUSThe major imperatives at 1947 were:1. Rapid economic development and

industrialization of the country and creating thenecessary infrastructure for economic

development.2. Wider ownership of economic manpower to

prevent its concentration in a few hands.

3. Generation of employment opportunities.

4. Removal of regional imbalances.

5. Better utilisation of natural resources .

6. Promote import substitutions.

7. Save and earn foreign exchange for the 11


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MAJOR PSES

Steel Heavy machinery / instruments

Petrochemicals

Cement

Power

Mining of coal and minerals

Extraction and refining of crude oil

Operation of air, sea, river and road transport

Financial services

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CURRENT STATUS

260 CPSEs (excluding 7 insurancecompanies).

The number of profit making CPSEs increased

steadily from 143 CPSEs in 2004-05 to 160

CPSEs in 2007-08.

The number of profit making CPSEs as on 2011-

12 stands at 161 with a total profit of Rs. 1,25,116

crore. (Source: Public Enterprise Survey 2011-12).

The results are good but

could i t have been better? 13


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PUBLIC POLICIES

Governments engage in various forms of publicpolicy

Many are directed at the major challenges facingcontemporary states:

Building community

Fostering development

Securing democracy and rights

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PUBLIC POLICIES

Public policies may be summarized andcompared according to outputs classified into

four headings:Distribution

Extraction

Regulation

Symbolic outputs

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FROM THE NIGHT WATCHMAN STATE TO THE

WELFARE STATE

Night Watchman State:a state, which primarily sought toregulate just enough to preserve law, order, a good businessclimate, and the basic security of its citizens

Police State:regulates much more intrusively and extractsresources more severely than the night watchman state

Regulatory State: evolved in all advanced industrialsocieties as they face the complexities of modern life

Welfare State: found particularly in more prosperous anddemocratic societies, distributes resources extensively toprovide for the health, education, employment, housing, andincome support of its citizens

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WELFARE STATE

First modern welfare state programs introduced inGermany in the 1880s Bismarck: social insurance programs that protected

workers

1930s to 1970s most industrialized states haveadopted and expanded welfare policies

1980s and 1990s the welfare states in advanced

capitalist countries continued to grow albeit at asomewhat slower rate

Mixture between social insurance and socialredistribution

In part paternalistic and in part Robin Hood 18


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WELFARE STATE Welfare benefits can be expensive and

governments often have limited funds.

There are three principles that govern most welfarestate provisions: Need - help and services are provided to those that need

them most

Contribution - benefits should go to those that havecontributed to the program

Entitlement/Universalism - everyone should have the

benefit, regardless of specific circumstances Often applied to primary education or to treatment for life-

threatening diseases

U.S. model in education - equality of opportunity

GoI and charitable organizations/individuals20


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INDIAS DEBT STATUS DURING (JUL- SEPT) 2013

Sl. No. Component Rs. Crore

1 Public Debt (2+3) 44,88,904

2 External Debt 4,22,394

3 Internal Debt 40,66,511

4 Other liabilities 6,48,030

TOTAL DEBT 51,36,934

Total Guaranteed debt 2,63,125

Outstanding guaranteed

debt

2,33,127

Source: finmin.nic.in

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DISTRIBUTION

Of money, goods, and services - to citizens,residents and clients of the state

Laswell - who gets what, when, and how Distributive policy profiles

Health, education, and national defense consumethe largest proportion of government spending

across the world.Developed countries: generally allocate from one

half to two thirds of their central governmentexpenditures to education, health, and welfare

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EXTRACTION

Direct extraction of services

Compulsory military service, jury duty, or compulsorylabor imposed on those convicted of crime

Direct resource extraction

Taxation

Direct taxes

Indirect taxes

Progressive tax structure

Regressive tax structure

The tax profiles of different countries vary both in theiroverall tax burdens and in their reliance on different types of

taxes. 24


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REGULATION

Regulation is the exercise of political control overthe behavior of individuals and groups in society.

Most contemporary governments are both welfarestates and regulatory states.

Government regulates:

By legal means

By offering material or financial inducementsBy persuasion or moral exhortation

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REGULATION

How do we describe and explain the differencesbetween political systems in the area of regulation?We ask:

What aspects of human behavior and interactionare regulated and to what degree?

What social groups are regulated, with whatprocedural limitations on enforcement and what

rights?What sanctions are used to compel or induce

citizens to comply? One aspect of regulation is particularly important politically:

government control over political participation and communication Political ri hts and civil liberties

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SOME OF THE REGULATIONS

Banking/ Foreign Exchange (RBI) Capital Markets (SEBI)

Insurance Sector (IRDA)

Pension Funds (PFRDA)

Commodities Markets (FMC) Telecommunication (TRAI)

Civil Aviation (DGCA)

Electricity (CERC/ MERC for the State) Markets orderliness (Competition Commission

of India)

UGC/ Medical Council of India/ so on

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COMMUNITY-BUILDING AND SYMBOLIC POLICIES

Intended to enhance peoples national identity, civilpride, or trust in government

Enhance other areas of performance: Make people pay their taxes more readily and honestly

Comply with law more faithfully

Accept sacrifice, danger, and hardship

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OUTCOMES: DOMESTIC WELFARE How do extractive, distributive, regulative, and symbolic

policies affect the lives of citizens?

Sometimes policies have unintended and undesirableconsequences.

To estimate the effectiveness of public policy, we have toexamine actual welfare outcomes as well as governmentalpolicies and their implementation.

Measures of economic well-being

Nigeria and India - severe problems

Income distribution tends to be most unequal inmedium-income developing societies, such as Brazil,

and more equal in advanced market societies as wellas in low-income developing societies, such as India.

Health outcomes (3 consecutive years, no single polio casereported in India till early 2014; thanks to pulse polio programme1994)

Education and information technologies (ISRO achievements30


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DOMESTIC SECURITY OUTCOMES

Crime rates have been on the increase in many advancedindustrial societies until recently as well as the developingworld. Russia, Brazil and Mexico- high rates of crimes

England, France (has had an increase), and Germany have a smallfraction of the U.S.s crime numbers

China has low murder rates; Japan even lower.

Much crime found in urban areas. Causes are complex.

Migration increases diversity and conflict.

Pace of urbanization explosive; severe problems of poverty andinfrastructure

Inequality of income and wealth, unemployment, drug abuse,hopelessness of big city life

Crime rates have come down in the U.S./ Belgium

Stronger economy; increased incarceration time; decrease in youth 34


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INDIA: CRIME SNAPSHOT

During the period 1953 and 2012, thefollowing trend is witnessed:

Murder: Risen by 296%

Rape: Risen by 902%

Kidnapping & Abduction: Risen by 804%

Dacoity: (-)23%; Robbery: (-) 225%, burglary (-)37%

Riots: Risen by 263%

Source: http://ncrb.nic.in/(MHA)

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INTERNATIONAL OUTPUTS AND OUTCOMES

International activities: economic, diplomatic, military andinformational

Most common outcome of the interaction among nations iswarfare

Deadly costs of international warfare have graduallyescalated 90 percent of the war deaths since 1700 have occurred in the 20th

Century. In the last decades of the 20thCentury, more than three-quarters of

the war deaths were civilian.

People of USSR-Russian have been the greatest victims of thetormented history of the 20thCentury.

Germany suffered the second largest number of deaths. Followed by China and Japan, France and Great Britain

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INTERNATIONAL OUTPUTS AND OUTCOMES

After WW-I, the most devastating conflicts have occurred inthe Third World. Partition of British India into India, Pakistan, and Bangladesh

associated with numerous deadly conflicts. Conflicts in Africa

Many newly independent from about 1960

Borders drawn by colonial powers

Serious problems of national cohesion/chronic civil war

End of Cold War Wave of instability and conflict

Uppsala Conflict Data Project

Role of the United Nations

Economic costs of national security

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POLITICAL GOODS AND VALUES

If we are to compare and evaluate public policy in differentpolitical systems, we need to consider the political goods thatmotivate different policies.

System goods: Citizens are most free and most able to actpurposefully when their environment is stable, transparent,and predictable.

Process goods: citizen participation and free politicalparticipation; democratic procedures and various rights of due

process Policy goods: economic welfare, quality of life, freedom and

personal security

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POLITICAL GOODS AND VALUES

There are two important criteria that most of uswould agree that government policy should meet: Fairness

Promotion and preservation of freedom

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TRADE-OFFS AND OPPORTUNITY COSTS

Hard fact about political goods: We cannot always havethem all simultaneously.

A political system often has to trade-offone value to obtainanother.

Opportunity costs are what you lose in one area bycommitting your resources to a different good.

One of the important tasks of social science is to discover

the conditions under which positive and negative trade-offsoccur.

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INTRODUCTION TO PUBLIC BUDGETING

AND FINANCE

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OBJECTIVES OF THE COURSE

Survey the dominant theories in budgeting and finance,compare practice and trends

Learn how to strategically plan a budget, how to manageongoing activities, and how to control spending;

Understand the role of public organizations in aneconomy

Understand social security, public health and other majorcategories of public expenditure

Understand the theory and practice of the redistributionof wealth and resources

Understand the impact of taxes on social welfare.

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WHAT IS PUBLIC BUDGETING?

How governments strategically plan a budget

Manage ongoing activities

Control spending

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WHAT IS PUBLIC FINANCE?

The study of how governments collect and

spend money and real resources

How do governments collect/spend money?

Positive analysis

How should governments collect/spend

money? Normative analysis

We are studying public finance in a market

economy

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CURRENT TRENDS

Shrink government down to the sizewhere we can drown it in a bathtub

Grover Norquist

The era of big government is overBill Clinton

Free market ideology

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ORGANIC VIEW OF GOVERNMENT

Society is a natural organism

Goals of society set by state

Actions of individual are judged by the

contribution they make to the state

Ask not what your country can do for you;

ask what you can do for your country.

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MECHANISTIC VIEW OF GOVERNMENT

Individuals are paramount, governmentcreated to meet the needs of individuals

Big debate over importance of individual

freedom Two types of freedom:

Freedom to do as you like

Freedom not to suffer from activities of othersAs society grows more crowded, second type of

freedom becomes more important

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THE ROLE OF GOVERNMENT: OBJECTIVE ANALYSIS

Complexity theory and systems thinking

Government in a market economy

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COMPLEXITY THEORY AND

SYSTEMS THINKING

Bringing together many, many simplecomponents leads to emergence ofspontaneous order, complex system: 2 Hydrogen and 1 0xygen atoms form water

molecule, molecules form cell, cells form organs,organs make up humans, humans make up society

Complex systems greater than the sum of theirparts

Characterized by non-linearities, feedbackloops, emergent properties, unpredictablesurprises, etc.

Government is a complex system55


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JURISDICTIONS

India is a Union of union of 28 states and seven union

territories. The responsibilities and powers (including

financial) of the Union and the States, and the

relationship between them, are set out in the Constitution

of India. The legislative powers are detailed in three lists-Union,

State and Concurrent.

The Union list includes matters of national interest such

as foreign affairs, railways, posts and telegraphs,currency and coinage, and inter-state trade and

commerce while the State list contains matters of

regional interest such as law and order, health,

agriculture, irrigation, power, rural and communitydevelo ment.58


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JURISDICTIONS

Certain matters of common interest, such aseconomic and social planning, have been

placed under the concurrent legislative

powers of the Union and the States. In the event of a clash between the laws of

the Union and the States in the concurrent

area, the laws of the former prevail.

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ALLOCATION OF HEADS

The Constitution allots separate legislative heads of

taxation to the Union and the States. Borrowing and

foreign exchange entitlements are controlled by the

Union.

The residual powers of levying taxes not mentioned inthe State list and the Concurrent list also rest with the

Union. The division of fields of taxation between the

Union and the States is based on economic and

administrative rationale. The power to levy taxes with an inter-state base, and

where uniformity in rates is desirable, is vested in the

Union Government, but the power to levy taxes that are

location- specific lies with the States. 60


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TAXES AND GRANTS

However, certain taxes are levied by the Union but arecollected and retained by the States, while certain other

taxes and duties are levied and collected by the Union

but their net proceeds are assigned to or shared with the

States.

The Constitution provides for payment by the Union of

grants-in-aid of revenues to the States.

The Government of India is also empowered to make

loans to the States or give guarantees in respect of loans

raised by them.

There is also provision for grants by the Union or a State

for any public purpose.

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AUDIT OF PUBLIC ACCOUNTS

The audit of the accounts of the Union and of the States

is a Union responsibility.

Accordingly the accounts of the Union and of the States

are to be kept in such form as the President of India

prescribes on the advice of the Comptroller and AuditorGeneral of India (CAG).

There is thus a unified system of auditing and

accounting, facilitated by Parliament enacting a law

governing the duties, powers and conditions of service ofthe CAG known as the Comptroller and Auditor

General's (Duties, Powers and Conditions of Service)

Act 1971.

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ORGANISATION FOR BUDGET MANAGEMENT The Finance Minister, assisted inter alia by the Budget Division

of the Department of Economic Affairs of the Ministry ofFinance, has responsibility for producing the budget, in the

form of the Annual Financial Statement and such

supplementary budgets as may be needed during a year for

the Government of India (other than for the railways).

The Budget Division is responsible for issuing all instructions

and guidelines for the preparation of budget estimates and for

monitoring the timely receipt of the same from all the Ministries

concerned.

The railway budget is prepared separately and presented to theParliament a few days in advance of the general budget.

The railway budget figures (net) are, however, also

incorporated in the general budget to give an overall picture of

the financial position. The Railway Budget is presented to

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BUDGET STEPS The General Financial Rules prescribe the broad guidelines,

procedures and forms for the preparation of budget estimates of

receipts and expenditure by the ministries.

In addition, the Budget Division issues a circular, normally during

September each year, known as the 'Budget Circular1 for the nextfinancial year (which is 1 April to 31 March as indicated earlier) for

preparation of the Revised Estimates of the current financial year

and the budget estimates of the ensuing financial year.

This circular gives detailed instructions about the preparation of

estimates of receipts and expenditure, the required format andthe various statements that are to be appended to the estimates.

It also specifies the processes to be followed and their scheduled

dates.

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BUDGET STEPS The estimating authorities prepare the detailed estimates of

receipts separately for each Major Head of account. For each Major Head, break-up of minor/detailed heads (to be in

conformity with the accounting classification) is given, taking into

account the actuals for the past three years.

Relevant notes are given to highlight any individual items of

significance or explanation for any major variation with reference

to past actuals.

The detailed estimates of expenditure are prepared by the

estimating authorities by each unit of appropriation (sub/detailed

head) under the prescribed Major and Minor Heads of Accountseparately for Plan and Non-plan expenditure.

The estimates of Plan expenditure are made on the basis of the

approved plan allocations intimated by the Planning

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PUBLIC DEBT The task of finding sufficient resources to fund plan

outlays has become exceedingly difficult. Additionally, incommon with most developing countries, India has also

had to face the impact of several adverse global

economic and fiscal developments.

Unavoidably there has been the need to import anecessary minimum of raw materials, machinery,

equipment and even technology. Such imports have

considerably strained the foreign exchange resources of

the country.

In view of the above problems, India, in common with

many other countries, has had to resort to large scale

borrowings both from the domestic economy and

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DOMESTIC BORROWINGS1. Raising of public loans.

2. Use of fiscal instruments such as Treasury Bills.

3. Borrowings from financial institutions.

4. Obtaining credit through the Reserve Bank of India.

In addition, India has a very large network of voluntary schemes for

promoting savings by individual investors. Known as National

Savings Schemes, these have contributed substantial amounts to the

resources needed by the Government.

The public sector enterprises have also been allowed to negotiatepublic borrowings through the medium of bonds, public deposits, and

other financial instruments. These may be required to be guaranteed

by the Government.

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BUDGET DOCUMENTS

'Economic Survey' : This gives a background to the economictrends prevailing in the country. It also gives an analysis of the

agricultural and industrial production, money supply, imports

and exports and other relevant factors which have a bearing

on the framing of the budget so that the Parliament may have

a better appreciation of the efforts made by the Governmentfor mobilising resources and their allocation in terms of

development priorities.

'Public Enterprises Survey' : This contains a detailed report on

the operations of commercial public enterprises. Besides, the

reports of the Comptroller and Auditor General of India on the

operation of various public sector enterprises are also

presented to Parliament during the budget session.

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BUDGET DOCUMENTS 'Expenditure Budgets' : This gives not only the estimates in terms

of revenue and capital under Plan and Non-plan heads in relation

to each administrative unit, but also a description of expenditure

in terms of major programmes. These are distinct from and in

addition to 'Demands for Grants'.

'Receipts Budget' : Estimates of receipts included in the Annual

Financial Statement are further analysed in this document. The

document also gives details of revenue and capital receipts, the

trend of receipts over the years and, more importantly the detailsof external assistance received by the Government.

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BUDGET DOCUMENTS

'Performance Budgets' : These budgets are prepared by allministries dealing with development activities. Also provided

are separate appraisal reports in respect of certain major

Central Sector Projects/ Programmes.

A statement is included on the programmes and performances

of each public sector undertaking under the respectiveadministrative ministry, indicating the installed and utilised

capacity, physical targets and achievements, results of

operations, and return on capital.

'Budget at a Glance' : This document provides information

regarding the total expenditure and resources, both for

meeting Plan Outlays as well as under the scheme of

devolution of financial resources envisaged in the Constitution,

transferred from Union budget to the budgets of State

Governments. 71


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BUDGET DOCUMENTS Following the budget speech of the Finance Minister

(which is also printed in two volumes and placed beforethe Parliament along with the budget documents), aFinance Bill is introduced incorporating the fiscalproposals of the Government for the levy of new taxes,modification of the existing tax structure or continuanceof the existing tax structure beyond a period approvedby the Parliament.

To facilitate understanding of the taxation proposals

contained in the Finance Bill, the provisions of the Billsare explained in simple language in a separatedocument called 'Memorandum Explaining theProvisions of the Finance Bill'.

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HOW DO WE OBJECTIVELY MEASURE

GOVERNMENT PERFORMANCE?

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ROLE OF THEORY

Observe, form hypotheses Test hypotheses through continued

observation, measurement and experiments

Confirm hypotheses repeatedly and youhave theory

Reject hypotheses and youre back to thedrawing board

Theory tells us what questions to test

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IF WE FAIL TO TEST OUR THEORIES AND

THEIR ASSUMPTIONS, OR CONTINUE TO

BELIEVE THEM WHEN THEY FAIL THE

TESTS, THEY BECOME IDEOLOGY, NOT

THEORY

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NEOCLASSICAL ECONOMIC THEORY

Assumes humans are rational, self interested utilitymaximizers Empirical studies reject this

Assumes perfect market competition

Empirical studies reject this Assumes in perfect markets invisible hand leads to

efficient allocation: greatest good for greatestnumber

Cant be tested in practice, because governmentsalways intervene with perfect functioning of market

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ECOLOGICAL ECONOMIC THEORY

Assume economy is subset of ecosystem

Ecologically sustainable scale is first priority

Socially just distribution 2nd

Efficient allocation 3rd

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GEORGIST ECONOMIC THEORY

Ownership of land leads to poverty

Value of land is created by nature and

society, not hard work of individual

Land tax could finance all government

expenditure, prevent land speculation and

concentration of ownership, end poverty

Land tax could be extended to include allvalue created by nature and society

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EMPIRICAL METHODS FOR TESTING


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EMPIRICAL METHODS FOR TESTING

THEORIES

Interviews Subjective, hard to interpret

Experiments

Ethical issues, self selection, etc.

Sample size

Econometrics (statistics)

Torture the data and it will confess

Theories can be very hard to test

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MEASUREMENT IN A COMPLEX SYSTEM

Very hard to isolate cause and effect E.g. feedback loops

Rarely have adequate baseline data

Systems evolve over time

Values matter

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HOW DO WE NORMATIVELY MEASURE

GOVERNMENT PERFORMANCE?

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WHY DO WE NEED NORMATIVE


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WHY DO WE NEED NORMATIVE

MEASURES?

We need some way to measure socialwelfare, and choose between alternativestates

Economic theory provides some guidelines Theory can be very incomplete

Different theories make different ethicalassumptions

The most commonly taught approach isneoclassical welfare economics

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PARETO EFFICIENCY

Pareto improvement-- Any change inallocation that makes at least one person

better off without making anyone worse off

Pareto optimuman allocation where nofurther Pareto improvements are possible

We always want to be at a Pareto optimum

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INDIFFERENCE CURVES IN EDGEWORTH BOX

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MARGINAL RATE OF SUBSTITUTION


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MARGINAL RATE OF SUBSTITUTION

If you lose one fig, how many apples would youneed to remain just as happy?

Determined by slope of indifference curve

Pareto optimum occurs when

Eve

af

Adam

af MRSMRS

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O C O OSS S O


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PRODUCTION POSSIBILITIES FRONTIER

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MARGINAL COST


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MARGINAL COST

Marginal cost of figs is the number of applesyou have to give up to get one more fig

f

aaf

MC

MCMRT

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EFFICIENCY DEMANDS THAT


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EFFICIENCY DEMANDS THAT

across all goods and all people in the economy

Eve

af

Adam

afaf

f

a MRSMRSMRT

MC

MC

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FIRST FUNDAMENTAL THEOREM OF


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FIRST FUNDAMENTAL THEOREM OF

WELFARE ECONOMICS

Assumptions: If all producers receive the same price

And there is a perfect market for every commodity

And people are perfectly rational,

Then, the free market automatically leads to aPareto Efficient allocation

If assumptions hold and all we care about is Paretoefficiency, then government should be minimized

But some Pareto optimums may be better forsociety than others

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SECOND FUNDAMENTAL THEOREM OF


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S CO U O O

WELFARE ECONOMICS

We can attain any point on the contract curve

by changing initial endowments and letting

market take over.

So initial distribution matters, big time

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CONCLUSIONS


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CONCLUSIONS

Government is formed by Constitution

Principles of Good governance

Government in India created huge public

sector and adopts role of a welfare state

The excessive spending makes the debt to

rise

There are several exclusive regulators set up

in India for several sectors/ markets

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CONCLUSIONS


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CONCLUSIONS

If markets functioned according to theory, themajor role of government would focus on

initial distribution

Markets unfortunately do not functionaccording to theory, as well learn in

subsequent sessions relating to market

failure

session i public policy

Documents