Posts Tagged ‘government’

The Tragedy of the Commons and the Myth of a Private Property Solution

November 1st, 2013 humas No comments

By: Amy Sinden, Temple University – James E. Beasley School of Law, April 7, 2006

Solusinya ?

The central question of environmental law is “how much?” How much pollution should we emit into the air and water? How much resource exploitation should we engage in? While for other “how much” questions our society tends to rely (at least in theory) on the market, when it comes to environmental harms, the tragedy of the commons frequently causes the market to fail – that is, to get the “how much” question wrong.

According to generally accepted wisdom, there are two potential solutions to the tragedy of the commons:

  1. government regulation, or
  2. privatization.

When the U.S. environmental movement began in the 1970s, government regulation seemed the obvious choice. But in recent years, intellectual fashions have changed, and privatization has become the preferred solution. The privatization solution, however, is a myth that exists, if at all, only in a world of theory.

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Capital and Institutions Stimulate Growth

December 3rd, 2010 humas 1 comment

“…the best single predictor of the growth of an economy remains its investment rate.”

“The four key issues for defining institutional quality are: the quality of the bureaucracy; rule of law; risk of expropriation; and repudiation of contracts by government.”

... for growth

What explains the stellar economic performance of the East Asian nations since World War ll? How critical a role did government interventions and industrial policy play? And perhaps most importantly, what policy insights can be gleaned from East Asia that might spur faster economic growth in the former East Bloc and developing nations of the world?

“Most economists would agree that there are major lessons to be drawn for other countries from East Asia’s growth experience,” begins a wide-ranging paper by NBER Research Associate Dani Rodrik. “But what these lessons are remains subject to considerable controversy.”

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Democracy, Dictators, and Growth

November 12th, 2010 humas No comments

“The economic success of postwar East Asia has been a consequence of good-for-growth dictators, not of institutions constraining them.”

good-for-growth dictators ?

The notion that democratic political institutions help foster economic growth has gained much attention in recent years.

Indeed, the relationship seems intuitive: democracy, checks on government, and strong individual property rights should create a hospitable environment for investments in human and physical capital, and growth should follow naturally.

However, in Do Institutions Cause Growth? (NBER Working Paper No. 10568), authors Edward Glaeser, Rafael La Porta, Florencio Lopez-de-Silanes, and Andrei Shleifer turn this notion on its head, arguing that “economic growth and human capital accumulation cause institutional improvement, rather than the other way around.”

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