However, some economists believe that even with good intentions governments seldom get their policy application correct. They can tax, control and regulate but the outcome will be a deepening of the failure or even worse a new failure will arise. We are moving here into the field of public interest theory and the theory of government behaviour. Another feature of this territory of economics is regulatory capture. This is when the industries under the control of a regulatory body begins to move policy options so as their outcome is in their favour.
Some economists argue that regulators full stop effect the ability of the market to operate freely.
That's all for this month. Hopefully these are useful as you implement the new specifications. Please remember that this is an interactive column. None of us like teaching with little clear assistance. The age of league tables mean we must feel confident when confronting candidates.