Loading...

1.5. Socially productive and unproductive activities

Course video 6 of 34

In this lecture we discuss reasons calling for government presence in market economies. We stress key advantages of markets over governments which make privately taken decisions highly efficient in the absence of externalities. The latter significantly distorts the work of market mechanism and lead to inefficient outcomes. We consider possible solutions to this inefficiency which are based either on coasean agreements or on public coercion (governements) and discuss conditions, advantages, and disadvantages related to these solutions.

À propos de Coursera

Cours, Spécialisations et Diplômes en ligne enseignés par des enseignants du plus haut niveau provenant des meilleurs universités et établissements d'enseignement du monde.

Community
Join a community of 40 million learners from around the world
Certificate
Earn a skill-based course certificate to apply your knowledge
Career
Gain confidence in your skills and further your career