Scholarly Comments on Academic Economics

Differences of Opinion Among Economists About Government and Market Efficacy

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Abstract

Economists view activist government policy and social insurance as potentially protecting individuals from risks and from market failure. Perhaps differences among economists in support for activist government policy in social insurance and regulation reflect differences in beliefs about the relative efficacy of government and markets. Economists for whom market failure is relatively more salient and government failure is relatively less salient will tend to favor government activism, and conversely.