Anatomy of Government Deficiencies: Proceedings of a by Horst Hanusch (auth.), Prof. Dr. Horst Hanusch (eds.)

By Horst Hanusch (auth.), Prof. Dr. Horst Hanusch (eds.)

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Several additional influences may operate to distort perceptions. For example, a distorting influence can be exercised by pressure groups whose special interests may be advanced by government intervention 2 . As a result, such groups often undertake politically effective efforts to emphasize and exaggerate both the shortcomings of the market, and the social benefits to be obtained from government action. Examples are provided by the political pressure of teacher's unions on behalf of expanded government funds for education, the trucking industry and teamsters union on behalf of various restrictions to limit competition in surface transportation, and the airline industry (at least, the competitively weaker firms) in favour of government regulation of routes and fares 3.

1976), Le Mal Fran9ais, Paris: Pion. Stigler, G. J. (1971), "The Theory of Economic Regulation", Bel/Journal of Economics and Management Science, Spring 1971, 2 ( 1), pp. 3-21. , K. Schepsle and Ch. Johnson (1979), The Political Economy of Benefits and Costs: A Neo-Classical Approach to the Politics of Distribution, Working Paper No. 47, Center for the Study of American Business, Washington University, St. Louis, Missouri, July 1979. Wolf, Ch. jr. (1979a), "A Theory of Non-Market Failure: Framework for Implementation Analysis", Journal of Law and Economics, 22, pp.

For one thing, we don't know whether the cognitive and verbal skills measured by the standardized tests constitute the proper set of "educational" objectives to be sought. Even if this were known, our understanding is remarkably limited concerning the optimum mix of curriculum, types and training of teachers, classroom or "field" experience and applications, "learning by doing", and the other ingredients of educational technology. In the national security domain, where it is commonly assumed that technology is both advanced and well understood, we have at best only a limited understanding of the technical (production-function) relationships among the inputs of military equipment, manpower, training, logistics support, command, control, communications, and intelligence, required to maximize the intended final output of "national security", for specified inputs.

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