Dysfunction of resource allocation by market mechanism and State intervention in corrections
Reference system to which it is discussed involvement in the economy market with perfect competition, perfect competition system, characterized by absolute lack of opportunities to influence the price for participating business entities. Neoclassical economics has shown that market with perfect comp...
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Veröffentlicht in: | Analele Universitatii din Craiova. Seria stiinte economice 2010, Vol.XXXVIII (_) |
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Hauptverfasser: | , |
Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | Reference system to which it is discussed involvement in the
economy market with perfect competition, perfect competition system,
characterized by absolute lack of opportunities to influence the price for
participating business entities. Neoclassical economics has shown that
market with perfect competition ensures optimum identity - efficiency -
balance. In reality, the functioning of free market competition on a
mecamism imperfect present, to varying degrees, "defective", "gaps" or
"failures" complete which result in the removal of optimum-efficiency
economy-balance identity and justifying the existence of a compensatory
mechanism (correction) of public action. To summarize, in terms of
objectives, involvement of the state presupposes that the following roles:
allocation role, subordinate goal of efficiency, distributive role, subordinate
to the objective of social equity and subordinated to the objective of
regulating the role of general equilibrium. |
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ISSN: | 1223-365X |