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Introduction to the General Theory of Defects of the Mixed Economy

Author

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  • Alexander Yakovlevich Rubinstein

    (Institute of Economics RAS)

Abstract

The author gives a new perspective on defects of the mixed economy in the context of nature and evolution of paternalism as one of elements of the theory of patronized goods. The researcher supplements standard market failures with ‘behavioral failure’, which is a direct consequence of irrational behavior of individuals, and ‘paternalistic failure’, which occurs as a result of erroneous actions of the state. The article also discusses the formation of paternalistic attitudes and reviews theoretical and applied aspects of liberalization of making political and economic decisions based on the development of civil society institutions and civic engagement aimed at reducing the risks of ‘government failures’ and welfare loss.

Suggested Citation

  • Alexander Yakovlevich Rubinstein, 2016. "Introduction to the General Theory of Defects of the Mixed Economy," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 4, pages 13-32.
    • Handle: RePEc:far:spaeco:y:2016:i:4:p:13-32
    DOI: 10.14530/se.2016.4.013-032
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