Market failureIn neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient, often leading to a net loss of economic value. The first known use of the term by economists was in 1958, but the concept has been traced back to the Victorian writers John Stuart Mill and Henry Sidgwick.
Regulatory captureIn politics, regulatory capture (also called agency capture) is a form of corruption of authority that occurs when a political entity, policymaker, or regulator is co-opted to serve the commercial, ideological, or political interests of a minor constituency, such as a particular geographic area, industry, profession, or ideological group.
Public choicePublic choice, or public choice theory, is a formal theory of political and social science that applies economic methods—namely, rational choice theory, game theory, decision theory, and social choice theory—to study political agents (e.g. officials, bureaucrats, and voters) and their interactions. Public choice research includes theories of political behaviour, political economics, public economy, and constitutional economics.
Supply-side economicsMacroeconomic theory This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these messages) The examples and perspectives in this article may not represent a worldwide view of the subject. The specific issue is: an over-emphasis on United States experience. You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate.
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SubsidyA subsidy, subvention or government incentive is a type of government expenditure which redistributes from tax payers to individuals, households, or businesses. Subsidies take various forms, such as direct government expenditures, tax incentives, soft loans, price support, and government provision of goods and services.Principal–agent problemConflict of interest when one person acts on another's behalf Basic idea of principal–agent problem (agency theory). The principal–agent problem (often abbreviated agency problem) refers to the conflict in interests and priorities that arises when one person or entity (the "agent") takes actions on behalf of another person or entity (the "principal").
Public goodIn economics, a public good (also referred to as a social good or collective good) is a commodity, product or service that is both non-excludable and non-rivalrous and which is typically provided by a government and paid for through taxation. Use by one person neither prevents access by other people, nor does it reduce availability to others, so the good can be used simultaneously by more than one person.
RegulationRegulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context.Demand-side economicsDemand-side economics is a term used to describe the position that economic growth and full employment are most effectively created by high demand for products and services. According to demand-side economics, output is determined by effective demand. High consumer spending leads to business expansion, resulting in greater employment opportunities.
TaxCompulsory contribution to state revenuePareto efficiencyIn welfare economics, a Pareto improvement formalizes the idea of an outcome being "better in every possible way". A change is called a Pareto improvement if it leaves at least one person in society better off without leaving anyone else worse off than they were before.
Economic efficiencyIn microeconomics, economic efficiency, depending on the context, is usually one of the following two related concepts: Allocative or Pareto efficiency: any changes made to assist one person would harm another.Productive efficiency: no additional output of one good can be obtained without decreasing the output of another good, and production proceeds at the lowest possible average total cost.These definitions are not equivalent: a market or other economic system may be allocatively but not productively efficient, or productively but not allocatively efficient.*As an Amazon Associate I earn from qualifying purchases.