''The Other Invisible Hand'' is a non-fiction book written by the economist
Julian Le Grand
Sir Julian Ernest Michael Le Grand, FBA (born 29 May 1945) is a British academic specialising in public policy. He is the Richard Titmuss Professor of Social Policy at the London School of Economics (LSE) and was a senior policy advisor to former ...
. The primary focus of his book is increasing
taxpayer sovereignty by developing a
market in the public sector.
The title of the book refers to
Adam Smith's invisible hand
The invisible hand is a metaphor used by the British moral philosopher Adam Smith that describes the unintended greater social benefits and public good brought about by individuals acting in their own self-interests. Smith originally mention ...
. The invisible hand is the idea that individual choice benefits society more than does a government which assumes that it "can arrange the different members of a great society with as much ease as the hand arranges the different pieces upon a chess-board."
Overview
Le Grand begins his book by suggesting that there are four models concerning the provision of
public goods
In economics, a public good (also referred to as a social good or collective good)Oakland, W. H. (1987). Theory of public goods. In Handbook of public economics (Vol. 2, pp. 485-535). Elsevier. is a good that is both non-excludable and non-riva ...
: trusting professionals, command and control, voice mechanisms and choice.
[The Other Le Grand? Evaluating the ‘Other Invisible Hand’ in Welfare Services in England](_blank)
/ref> Out of the four, "choice" is the best way to ensure the optimal provision of quality public services.[Julian Le Grand: The Other Invisible Hand](_blank)
/ref> This is because choice, in theory, "creates incentives for providers to deliver what users want".[The Other Invisible Hand: Delivering Public Services Through Choice and Competition. By Julian Le Grand](_blank)
/ref> The key focus is on how to make choice work better. This includes "ensuring that there is genuine competition, allowing entry
Entry may refer to:
*Entry, West Virginia, an unincorporated community in the United States
*Entry (cards), a term used in trick-taking card-games
*Entry (economics), a term in connection with markets
*Entry (film), ''Entry'' (film), a 2013 Indian ...
and exit
Exit(s) may refer to:
Architecture and engineering
* Door
* Portal (architecture), an opening in the walls of a structure
* Emergency exit
* Overwing exit, a type of emergency exit on an airplane
* Exit ramp, a feature of a road interchange
...
of schools and hospitals, enabling individuals to make informed choices and preventing cream-skimming of pupils and patients."
/ref>
Criticism
Criticisms include that the book does not address the cost of implementation, it inadequately addresses the issue of consumer information and it does not offer sufficient evidence to support the conclusion.
See also
* Consumer sovereignty
Consumer sovereignty is the economic concept that the consumer has some controlling power over goods that are produced, and the idea that the consumer is the best judge of their own welfare.
''Consumer sovereignty in production'' is the controlli ...
* ''Motivation, Agency, and Public Policy
''Motivation, Agency, and Public Policy'' is a non-fiction book written by the economist Julian Le Grand. The book, which argues in favor of increasing tax choice, was described by ''The Economist'' as "accessible – and profound" and by ''The ...
''
* '' Scroogenomics''
* '' Exit, Voice, and Loyalty''
References
External links
* Le Grand, Julian
Motivation, Agency, and Public Policy: Of Knights and Knaves, Pawns and Queens
2003.
{{DEFAULTSORT:Other Invisible Hand
Economics books
Princeton University Press books
2007 non-fiction books