Imperfection as the Norm
Although we generally teach economics as if markets formed a perfect system, in reality, there are many instances of partial and complete market failure in the real economy. Imperfections complicate models and analyses. Therefore, it is better to first introduce students to the model of the ideal-typical perfect system. In addition, in many circumstances, equilibrium and partial equilibrium models derived from the ideal-typical system have yielded good insights and results. However, ignoring imperfections carries several costs, including neglect of the role of institutions, and probably too much confidence in the self-correcting power of markets by policy makers.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert D. Atkinson, 2004. "The Past and Future of America’s Economy," Books, Edward Elgar Publishing, number 3538.
- Manuel Couret Branco, 2011. "Economics for Human Rights," CEFAGE-UE Working Papers 2011_02, University of Evora, CEFAGE-UE (Portugal).
- Roemer John E, 2009. "Changing Social Ethos is the Key," The Economists' Voice, De Gruyter, vol. 6(7), pages 1-4, July.
- Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, March.
When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v:39:y:2009:i:1:p:1-7. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark L. Burkey)
If references are entirely missing, you can add them using this form.