By Horst Hanusch (auth.), Prof. Dr. Horst Hanusch (eds.)

ISBN-10: 3662216108

ISBN-13: 9783662216101

ISBN-10: 3662216124

ISBN-13: 9783662216125

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Extra info for Anatomy of Government Deficiencies: Proceedings of a Conference held at Diessen, Germany July 22–25, 1980

Example text

The balance here can, of course, be overdrawn. The moral zealot in positions of political power may well be less desirable than the private selfseeker who is on the take more or less openly. But within broad tolerance limits, it is better to have the career bureaucrat who is dedicated to his own conception of "the public interest" than it is to have the time-serving drone who minimizes effort. Economists in partitular are likely to neglect the importance of ethical content in quite ordinary behavior, whether this be in market or nonmarket settings.

With the mechanism described in eq. (3), they would not be. I am indebted to Joseph Newhouse and Peter Stan for calling my attention to this point. N. (1980). 36 Charles Wolf, Jr. 2 applications! 2; stated differently, 45% of the applicants could expect to be admitted. The accurate figures were distinctly news-unworthy! It may be conjectured that public "perceptions" of the malfunctioning system were influenced as much by the Ot distortion in the Times article as by the "true" value of the admissions probabilities 1.

However, this premise is perhaps more arguable in the case of non-market than market demand. For some of the n non-market activites (for example, those relating to the administration of social welfare and other redistributive programs) demand may vary inversely with Y: the demand for certain non-market activites may be higher in business cycle troughs than at the peaks. But even if, on balance, aggregate non-market demand tends toward a positive income elasticity, there is yet another complication.

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Anatomy of Government Deficiencies: Proceedings of a Conference held at Diessen, Germany July 22–25, 1980 by Horst Hanusch (auth.), Prof. Dr. Horst Hanusch (eds.)


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