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It is necessary for economies to transition to a circular economy (CE). What particularly inhibits the implementation of the CE in linear economies is market failures, whose theoretical principles are embedded in modern welfare economics and neoclassical economics. Market failures shape the functioning of different areas of the markets, including the allocation of and access to resources, competition, and cooperation, among others. Due to their presence in the market, opportunities for industrial symbiosis based on intersectoral cooperation and the creation of resource-efficient production systems are limited. It is crucial because the functioning of local actors within an industrial symbiosis significantly favours the promotion and development of a CE. The aim of the paper is to identify market failures that limit the implementation of CEs in traditional linear economies. The article is based on focus group interviews (FGI) conducted with four groups of stakeholders in the Netherlands and Poland: academia, society, business and the government. The main findings show that one of the greatest barriers in Poland is stakeholders’ low awareness of the CE, which influences their possibilities of cooperating and networking. Existing laws additionally limit opportunities to develop the CE. In contrast, in the Netherlands, where awareness is deeply embedded in the culture, education system and upbringing, the level of market failure is lower.

Grassroots communities in the 21st century take on the role of social innovators and contribute to addressing market failures and system failures through innovative action. The aim of this empirical study is to evaluate the various modes in which social innovations (products and services) arise in the conditions of community-led grassroots initiatives, to compare the patterns of social and economic value creation through these innovations and to elaborate the possibilities of their commercial exploitation. Drawing from data on 63 innovative products and service of 106 grassroots, taking the optics of grounded theory and adopting the approach of comparative analysis, this study sheds a light on the emergence of "pure", "bi-focal", and "market-exposed SI" products and services. Furthermore, the results suggest that it is possible to conceptualize the demand for community-led products and services. The majority of identified innovative products and services of grassroots generate a mix of social and economic outcomes that address both the social needs within one's own community and needs of various stakeholders, or marginalized groups. The differentiation of SI into "pure", "bi-focal", and "market-exposed" was found to be relevant. Also, we identified a rationale for further elaboration of the evolutionary patterns of SI development, as we found that some "pure" SIs have the potential to be introduced to market within the later stages of the SI life-cycle. Some of the investigated products and service had to be commercially exploited due to a paradox—some social, public beneficial solutions need to be commercially exploited to be provided sustainably in the long term. [ABSTRACT FROM AUTHOR]

ÖZ: Devletin finansal piyasalara müdahale gerekçeleri, gerek kamunun ekonomik ve finansal alandaki rollerinde yaşanan teorik dönüşümler, gerekse de ülkelerin ve sektörlerin dinamik yapıları göz önüne alındığında tarihsel olarak sürekli değişim göstermiştir. Özellikle 1980’li yıllar itibariyle finansal serbestleşme hareketlerinin ivme kazanması ve bu sürece 1990’lı yıllarda küreselleşme olgusunun da eklenmesi, söz konusu değişimin temel noktasını oluşturmuştur. Finansal piyasaların kendi hallerine bırakıldığında krizlere açık bir görünüm sergilemesi ve finansal sistemde oluşabilecek problemlerin ekonominin genelini etkileyebilecek olması, finansal regülasyon tartışmalarına ivme kazandırmıştır. Buradan hareketle çalışmada, 1980’li yıllardaki deregülasyon faaliyetleri sonrasında tekrardan gündeme gelen finansal regülasyonların gerekçeleri kavramsal ve teorik açıdan incelenmektedir. Bugün genel kabul gören yaklaşım çerçevesinde düzenleyici otoritelerin uyguladıkları optimal regülasyon dengesinde hizmet ettikleri amaçları; finansal piyasalardaki başarısızlıkları engellemek, sektörü sistemik risklerden korumak, finansal kurum müşterilerini korumak, piyasadaki mevcut etkinliği artırmak, diğer sosyal hedefleri gerçekleştirmek ve parasal-finansal istikrarı sağlamak şeklinde sıralamak mümkündür. ABSTRACT: The reasons for government intervention in financial markets have continuously changed historically, taking into account both the theoretical transformations in the economic and financial roles of the state and the dynamic nature of countries and sectors. The acceleration of financial liberalization movements especially in the 1980s and the addition of the globalization phenomenon in the 1990s to this process constituted the main point of this change.. The vulnerability of financial markets to crises when left to their own devices and the fact that problems that may arise in the financial system may affect the economy in general have given impetus to the debate on financial. From this perspective, this study analyzes the conceptual and theoretical justifications for financial regulation, which came back to the agenda after the deregulation activities in the 1980s. The objectives served by regulatory authorities in the optimal balance of regulation can be listed as preventing failures in financial markets, protecting the sector from systemic risks, protecting customers of financial institutions, increasing market efficiency, achieving other social objectives and ensuring monetary-financial stability.

We provide a historically informed analysis of the media in post‑communist Mongolia thirty years after the transition. In 1990, Mongolia chose a peaceful transition towards liberal democracy following the seventy years of the communist regime. Our analysis first establishes that amid the challenges and changes since the new constitution was adopted, a plural and commercial media system has undeniably been established. However, only a few established themselves as independent media with editorial, business, and ethical norms. While the plurality of media outlets created a media landscape aberrant from the socialist‑time propagandistic media, the media market failures, along with rudimentary legal and professional institutions, contributed to the media instrumentalization and media capture in Mongolia. [ABSTRACT FROM AUTHOR]

According to Joseph Heath, privatizations should be judged on a case-by-case basis with appeal to the Pareto criterion. This approach, or so I argue, amounts to a depoliticization of privatization. While Heath's approach is effective and at times illuminating, I show that a consistent application of his methodology is self-defeating in that it eventually requires a politicization of privatization. With appeal to transaction cost theory, I show there are social costs associated with affirming the competitive pressures of the market. Subsequently, I argue that while private actors may, according to Heath, pursue efficiency with appeal to an adversarial morality, state-owned enterprises (SOEs) are much more constrained in how they may achieve such gains. Due to the pressures of liberal neutrality, SOEs may chase efficiency only without setting actors back. Conversely, the private sector's potential for success is predicated on its ability to compete for Kaldor-Hicks efficiency, which specifically allows for win-lose interactions. While SOEs are often no more able than the private sector to achieve Pareto optima, this discrepancy makes it so that SOEs produce gains that are ex-ante lower but more equal, whereas the private sector produces gains that are ex-ante higher but more unequal. Thus, the social cost of affirming the competitive pressures of the market is ex-ante inequality. If this premise is accepted, there is no way to avoid the conclusion that a consistent case-by-case approach requires a structural, political view on how privatizations affect the state's ex-post Pareto-enhancing abilities. [ABSTRACT FROM AUTHOR]

Grassroots communities in the 21st century take on the role of social innovators and contribute to addressing market failures and system failures through innovative action. The aim of this empirical study is to evaluate the various modes in which social innovations (products and services) arise in the conditions of community-led grassroots initiatives, to compare the patterns of social and economic value creation through these innovations and to elaborate the possibilities of their commercial exploitation. Drawing from data on 63 innovative products and service of 106 grassroots, taking the optics of grounded theory and adopting the approach of comparative analysis, this study sheds a light on the emergence of “pure”, “bi-focal”, and “market-exposed SI” products and services. Furthermore, the results suggest that it is possible to conceptualize the demand for community-led products and services. The majority of identified innovative products and services of grassroots generate a mix of social and economic outcomes that address both the social needs within one’s own community and needs of various stakeholders, or marginalized groups. The differentiation of SI into “pure”, “bi-focal”, and “market-exposed” was found to be relevant. Also, we identified a rationale for further elaboration of the evolutionary patterns of SI development, as we found that some “pure” SIs have the potential to be introduced to market within the later stages of the SI life-cycle. Some of the investigated products and service had to be commercially exploited due to a paradox—some social, public beneficial solutions need to be commercially exploited to be provided sustainably in the long term.

Public transportation, one of the basic services provided by a modern state, is of strategic-national importance and has implications for national security. Transportation impacts individual lives, the economy, society, demography, and quality of life. These aspects are relevant to decision making at the government level and include elements in decisions taken with national security considerations. At the political level decisions must be guided by the will to serve the public interest, and should facilitate, rather than block, reforms and innovations in the field. This article emphasizes that despite the importance of public transportation and its impact on the development of the economy and, and in turn on national strength and national security, in Israel this field is characterized by ongoing market and administrative failures. In fact, the situation resembles a "march of folly," in which decision makers operate contrary to national and public needs arising from demand, and contrary to normative professional considerations. [ABSTRACT FROM AUTHOR]

The reasons for government intervention in financial markets have continuously changed historically, taking into account both the theoretical transformations in the economic and financial roles of the state and the dynamic nature of countries and sectors. The acceleration of financial liberalization movements especially in the 1980s and the addition of the globalization phenomenon in the 1990s to this process constituted the main point of this change. The vulnerability of financial markets to crises when left to their own devices and the fact that problems that may arise in the financial system may affect the economy in general have given impetus to the debate on financial. From this perspective, this study analyzes the conceptual and theoretical justifications for financial regulation, which came back to the agenda after the deregulation activities in the 1980s. The objectives served by regulatory authorities in the optimal balance of regulation can be listed as preventing failures in financial markets, protecting the sector from systemic risks, protecting customers of financial institutions, increasing market efficiency, achieving other social objectives and ensuring monetary-financial stability. [ABSTRACT FROM AUTHOR]

This article presents evidence of misallocation across households in rural Indian agriculture. I show that household demographics predict own farm labor demand for smallholder farmers but not non‐smallholder farmers. A simple model of labor allocation predicts a clear consequence of this duality: smallholder farmers will reallocate labor across plots less in response to price changes than non‐smallholders. Detailed household panel data confirms this theoretical prediction. Three additional facts suggest that a lack of off‐farm labor opportunities may be partly responsible for the behavior of smallholders, leading smallholders to over allocate labor to agricultural production. First, smallholders report fewer hours of involuntary unemployment when their own crop prices increase. Second, yield is substantially higher for smallholders on plots of the same size. Finally, estimated marginal revenue products of labor are consistently lower for smallholders. [ABSTRACT FROM AUTHOR]

The purpose of this article is to show that Prices, Income and Public Policy (1954), an introductory textbook in economics written by William Allen, James Buchanan and Marshall Colberg, was actually a treatise in political economy. The book indeed tapped to the political economy of Henry Simons and Frank Knight, and anticipated Virginia Political Economy. This form of political economy has three dimensions that we discuss in this article. First, teaching principle of economics. Second, defending the virtues of a free-market economy. Thirdly, insisting on the importance of government intervention in such a system. Their point Allen, Buchanan and Colberg made was that a free market is flawed, just as government intervention. By contrast with those who were suggesting to invent a new form of capitalism to deal with the evils of capitalism, they claimed that one should try to make this system work by understanding its nature. [ABSTRACT FROM AUTHOR]

Corporate social responsibility (CSR) and its impact on performance have generated a debate that has evolved across several perspectives (shareholder, stakeholder, resource-based, and contingency). Building on the resource-based and contingency perspectives, we shed new light on this debate by analyzing the impact of CSR on performance in emerging market firms, advancing the idea that CSR is a mechanism that helps address market and government failures. We first argue that CSR's three constituent dimensions (environmental, social, and governance) vary in their impact on performance because each dimension has a different mitigating effect on contextual failures that hobble emerging market firms. Specifically, we contend that social CSR has a larger effect on performance than either governance CSR or environmental CSR for emerging market firms, because the former helps build capabilities that more directly reduce the negative consequences of government failures in the provision of public goods and services that firms need to operate efficiently. We then provide additional depth to this idea by arguing that other mechanisms used for mitigating market failures in an emerging market context, namely firm-level business group affiliation and country-level government policy nudges, strengthen this differential influence of each of the three dimensions of CSR on performance. Analyses of a sample of 89 publicly traded Indian firms from 2007 to 2017 support these arguments. Funding: A. Cuervo-Cazurra thanks the Lloyd Mullin fellowship at Northeastern University for financial support. S. Purkayastha thanks Indian Institute of Management, Calcutta for financial support. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1639. [ABSTRACT FROM AUTHOR]

ABSTRACT The superiority of industrial performance in East Asian countries, particularly in the face of their counterparts in Latin America, had a strong impact on the debate about the relationship between state intervention and industrial performance. The structuralist paradigm was quickly replaced by a new orthodoxy whose recipe for success is a minimalist state and an open economy. This article seeks to show that, although the opening of the economy is a fundamental ingredient, its complement is not a minimalist state, but an interventionist one. Not the Latin American type, but one that restricts its actions to major market failures.

Introducción/objetivo: dado que las fluctuaciones del precio de la leche impactan su producción local, y esto incide en un sector vital para la economía, por su aporte al PIB y la generación de empleos directos e indirectos, el presente trabajo busca establecer ¿cuál ha sido el efecto de los incentivos monetarios sobre la calidad de la leche de 164 predios lecheros del valle de Ubaté y Chiquinquirá, entre marzo del 2012 y marzo del 2018? Metodología: para responder a esta pregunta, se parte de la hipótesis de que la implementación del esquema de pago por calidad descrito en la Resolución 0017 del 2012 afectó positivamente los valores con los que se mide la calidad higiénica de la leche. Para someter esta hipótesis a prueba, se utilizó una metodología de enfoque mixto (cualitativo y cuantitativo), descriptivo, correlacional y explicativo, no experimental, utilizando un modelo longitudinal de datos panel para la muestra de fincas productoras de leche. Resultados: el estudio permitió establecer que el esquema de pago por calidad (PPC) actual, el PPC rezagado y el precio pagado al productor (PPP) tienen efecto significativo en la disminución de los recuentos microbiológicos de la leche. El precio del gramo de sólidos y la cantidad de sólidos por litro son significativas e incrementan los recuentos microbiológicos de la leche. Conclusiones: se concluyó que es recomendable incrementar la participación de las bonificaciones por UFC sobre el precio total, pues esto incentivaría a una mejora más rápida de la calidad higiénica. Introduction: Given that milk price fluctuations have an impact on local milk production, which affects a vital sector for the economy due to its contribution to GDP and the generation of direct and indirect jobs, this study seeks to establish what has been the effect of monetary incentives on the quality of milk from 164 dairy farms in the Ubaté and Chiquinquirá valley between March 2012 and March 2018. Methodology: To answer this question, it is hypothesized that the implementation of the quality payment scheme described in Resolution 0017 of 2012 positively affected the values with which the hygienic quality of milk is measured. To test this hypothesis, a mixed approach methodology was used (qualitative and quantitative), descriptive, correlational and explanatory, non-experimental, using a longitudinal model of panel data for the sample of milk producing farms. Results: The study allowed establishing that the current quality payment scheme (QPP), the lagged QPP and the price paid to the producer (PPP) have significant effect on decreasing milk microbiological counts, the price per gram of solids and the amount of solids per liter are significant increase milk microbiological counts. Conclusions: It was possible to conclude that it is advisable to increase the participation of bonuses per CFU on the total price, this would incentivize a faster improvement of hygienic quality.

Wellbeing from an economic perspective is about getting access to quality healthcare when needed to enable a quality life and healthier and more productive workforce in the economic ecosystem, thus contributing to economic growth. In this analysis we try to identify, what type of the architecture in the health care system can promote wellbeing.

Several policies have been proposed to reduce the environmental impact of agricultural trade. However, a number of these policies have low efficiency on a global scale due to side effects on third-competitor countries. The objective of this article is to assess the consequences of these policies under the existence of market failures that characterise the agricultural sector (i.e., ex ante price uncertainty and oligopoly in international markets). In particular, it is shown that some of these policies could cause instability in the agricultural trade system in the short/medium run, as well as permanent adverse side effects on competitor countries. Using a theoretical dynamic model that includes these failures, it was found that instability could be reduced by supplying information that could help producers to improve price forecasting. Likewise, the adverse side effects could be prevented by means of sustainable policies adopted co-ordinately by competitor countries. This latter result is consistent with the general strategies stated by the Climate Club. [ABSTRACT FROM AUTHOR]

The article is devoted to the topic of economic planning at the state level. The historical excursus shows the origins of the planned economy elements on the example of three countries: Japan, India and France, as well as the evolution of its planned policy in the 20th century. The article provides a rationale for the relevance of planning, including as a tool to overcome market failures. The ESG agenda, in particular the issue of reducing the negative anthropological impact on the environment, is seen as one of the drivers for strengthening the role of planning. [ABSTRACT FROM AUTHOR]

Community food projects (CFPs) have diverse purposes relating to correcting market failures, community cohesion and not-for-profit operation. These are well served by social innovations relative to technical and/or economic ones. Whilst innovation is invariably associated with ‘new’ ideas, innovation theory accommodates learning from the past, acknowledging its relative neglect. This paper explores the extent to which the purposes and innovative actions of CFPs are informed by past practice. The significance of a ‘return’ in food is assessed, where policies for regenerative agriculture, relocalisation and food resilience all draw on ‘the way we used to do things’. The flexibility of social innovation, too, has meant recourse to past practice in emergency responses to the COVID-19 pandemic. Empirical evidence from three research projects which benchmark historical food practice against contemporary actions of CFPs, identifies both explicit reference to historical practice to inform current behaviour, as well as the mimicking of past practice. Close examination of historical food innovations to inform current practice allows choices to be made in adopting or adapting such innovations or identifying what to avoid. [ABSTRACT FROM AUTHOR]

Copyright of Revista Derecho del Estado is the property of Universidad Externado de Colombia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In recent years, insurance companies have begun tracking their customers' behaviors and price premiums accordingly. Based on the Market-Failures Approach as well as the Justice-Failures Approach, I provide an ethical analysis of the use of tracking technologies in the insurance industry. I focus on the use of telematics in car insurance and on the use of fitness tracking in life insurance. The use of tracking has some important benefits to policyholders and insurers alike: it reduces moral hazard and fraud, increases actuarial fairness, and incentivizes safe behavior. These benefits, however, are outweighed by significant moral objections. First, the use of tracking technologies significantly undermines the fairness of the interaction between insurance companies and policyholders. Specifically, the use of tracking eliminates information asymmetries, but in such a way that favors insurers exclusively. Furthermore, tracked behaviors and the ability to choose to behave safely are highly correlated with other variables such as income. Therefore, tracking-based insurance relies on and exacerbates existing inequalities and injustices, which undermines the benefits that tracking is supposed to introduce. [ABSTRACT FROM AUTHOR]

Copyright of Foro Internacional is the property of El Colegio de Mexico AC and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The Market Failures Approach (MFA) is one of the leading theories in contemporary business ethics. It generates a list of ethical obligations for the managers of private firms that states that they should not create or exploit market failures because doing so reduces the efficiency of the economy. Recently the MFA has been criticised by Abraham Singer on the basis that it unjustifiably does not assign private managers obligations based on egalitarian values. Singer proposes an extension to the MFA, the Justice Failures Approach (JFA), in which managers have duties to alleviate political, social, and distributive inequalities in addition to having obligations to not exploit market failures. In this paper I describe the MFA and JFA and situate them relative to each other. I then highlight a threefold distinction between different types of obligations that can be given to private managers in order to argue that a hybrid theory of business ethics, which I call the MFA + , can be generated by arguing that managers have obligations based on efficiency and duties based on equality to the extent that these latter obligations do not lead to efficiency losses. This argument suggests a novel theoretical option in business ethics, elucidates the issues that are at stake between the MFA and the JFA, and clarifies the costs and benefits of each theory. [ABSTRACT FROM AUTHOR]

This article seeks to make two contributions to the understanding of social insurance, a central policy tool of the modern welfare state. Focusing on Britain, it locates an important strand of theoretical support for early social insurance programs in antecedent developments in mathematical probability and statistics. While by no means the only source of support for social insurance, it argues that these philosophical developments were among the preconditions for the emergence of welfare policies. In addition, understanding the influence of these developments on British public discourse and policy sheds light on the normative principles that have undergirded the welfare state since its inception. Specifically, it suggests that the best model, or normative reconstruction, of social insurance in this context is a value-pluralist one, which pursues efficiency and equality or solidarity, grounded in group-based perceptions of risk. [ABSTRACT FROM AUTHOR]

The political market is a mechanism like the traditional economic market, in which the players act within the framework of the utility function, the exchange process, and formed market strategies. Although the economic necessity of political markets is obvious, it should be called an economic market in terms of the effect it has on social welfare. The effectiveness of the political market depends on whether it have the characteristics of a perfectly competitive market. A perfectly competitive market refers to a market of goods and services with the lowest possible price and the lowest cost, from which the players in the market benefit. However, when the market mechanism has difficulties in providing an optimal level of resource allocation in the current system, it begins to lose its perfectly competitive market feature and its effectiveness in economic terms. Since the market mechanism cannot be balanced naturally itself, it needs legal regulations that are called as non-market intervention and that have economic consequences, in order to regulate the market functions. The main purpose of this study is to reveal the economic market nature of the concept of political market. The political market is explained theoretically through the theory of market failures and the political market mechanism is revealed based upon conventional market logic. [ABSTRACT FROM AUTHOR]

Copyright of Research Papers of the Wroclaw University of Economics / Prace Naukowe Uniwersytetu Ekonomicznego we Wroclawiu is the property of Uniwersytet Ekonomiczny we Wroclawiu and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In this paper, we analyze the demand side of the credit card market. Using unique survey data and a discrete choice model, we uncover consumer preferences for all price and nonprice features of credit cards. Our results provide evidence for an alternative explanation for the credit card pricing puzzles. We show that consumers view credit cards as highly differentiated products with both bank-level and card-level nonprice features. When selecting their credit cards, they predominantly prioritize these nonprice features over prices. Although private banks charge higher prices for their credit card services than other banks, the majority of consumers choose them as issuers due to their bank-level and card-level nonprice features. Consumers who prioritize prices tend to choose the credit cards of participation or public banks. Widespread branch/automated teller machine networks as bank-level features and installments, bonuses/rewards/miles and the prestige of the card as card-level features are particularly effective in consumers' decisions to choose private banks as issuers. Such strong preferences for nonprice features seem to furnish private banks with market power. Hence, we argue that underlying issuers' market power is also this differentiated nature of credit cards, for which regulatory measures are not self-evident. [ABSTRACT FROM AUTHOR]

Copyright of Estudios de Derecho is the property of Estudios de Derecho and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Sakarya Journal of Economics / Sakarya Iktisat Dergisi is the property of Sakarya Journal of Economics / Sakarya Iktisat Dergisi and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The transition towards a carbon-neutral economy is a fundamental change, it involves not only transforming the energy sector but also radical reforms across the whole economy. Managing fundamental and wholesale change across such a large economy is a massive coordination challenge requiring the simultaneous deployment of a collection of instruments and institutional change. This paper looks into the key challenges in building a carbon-neutral economy and discusses how governments and markets should work together in addressing these challenges. Due to significant failures in key markets relevant to tackling carbon emissions and to the absence of crucial markets, this paper argues that governments must play an active role in formulating and implementing effective environmental policies, regulations and design. This paper discusses major market failures and market absence, leading to suggestions on policy measures that governments should take to overcome these challenges, enabling markets to give better signals in directing resource allocation and guiding the low-carbon transition. Governments must act to facilitate a transition that enables equity in opportunities and outcomes across regions and individuals. Implementing these strategies and policies requires cohesive government structures, led from the most senior levels, to foster the necessary investment, innovation and change needed.

The authors propose their view of the economic theory of modern state, being an important component of the theory of patronized goods and the general theory of mixed economy failures. Such an approach is based on the authors’ original understanding of irrationality, according to which individual behavior is considered irrational from the outside observer’s point of view, with his own preferences. The theoretical basis for this assumption is a known understanding of the social interest per se, without reducing it to the preferences of economic agents. This understanding provides more general definition to paternalism and find out the risks of its negative consequences. Analysis of state paternalism evolution, presented in the article, is important in the present research as it is reflected in the institute of state. Distinguished are several historic phases of change in its contents and trends of development. Presented the economic analysis of state-regulating models, models of social state, developing-state and «play-maker state», providing the institutions to create paternalist settings of the government, declaring its preferences as normative social interests. Alongside with the other failures of mixed economy the authors describe their special case – «paternalism failure», combining the failures of social choice and that of irrational bureaucratic activities. There are five types of government officers’ irrationality: Vjazemsky law, dilettantism, «teller effect», Parkinson law, and self-interest of bureaucrats generating «managerial failures». It is demonstrated that unlike the market failures and associated failures of government activities, the risks of paternalism failure of the government may be reduced by the institutes of the civic society and citizens’ self-organization due to their influence on creating the normative assumptions and limits to the bureaucratic tyranny.

The field of social entrepreneurship has taken off with the explosive growth of different versions of the phenomena, like micro-credit, and with greater support, as from Ashoka and the Gates Foundation, but it remains lagging in theoretical understanding. We build upon the model of social entrepreneurship as a four unit system. We generate four new propositions based on existing theory describing social entrepreneurship as addressing market failures and as a behavioural process. Specifically, our propositions summarise our analysis of how the context and targets of social entrepreneurship activity co-evolve in the system, actively affecting outcomes initiated by social entrepreneurs' behaviours. [ABSTRACT FROM AUTHOR]

Copyright of Estudios de Derecho is the property of Estudios de Derecho and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)