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Government Supply and Government Production Failure: A Framework Based on Contestability

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  • Vining, Aidan R.
  • Weimer, David L.

Abstract

A complete conceptual framework for policy analysis requires a theory of government supply and government production failure to complement the well-developed theory of market failure provided by welfare economics. Charles Wolf has made an important start by attempting to draw parallels between market failures and the manifestations of government supply failures. This article provides a more useful analytical framework for government supply failure in two important ways. First, it draws on several perspectives from the economics of organization to sketch both normative and positive theories of government supply. Second, it uses the positive theory of government supply behavior to make direct comparisons with the traditional market failures. It concludes with some implications of the framework for assessing the potential gains from privatization.

Suggested Citation

  • Vining, Aidan R. & Weimer, David L., 1990. "Government Supply and Government Production Failure: A Framework Based on Contestability ," Journal of Public Policy, Cambridge University Press, vol. 10(1), pages 1-22, January.
    • Handle: RePEc:cup:jnlpup:v:10:y:1990:i:01:p:1-22_00
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    Citations

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    Cited by:

    1. Shin, Hoon C. & Vallury, Sechindra & Abbott, Joshua K. & Anderies, John M. & Yu, David J., 2022. "Understanding the effects of institutional diversity on irrigation systems dynamics," Ecological Economics, Elsevier, vol. 191(C).
    2. Radygin, Alexander & Entov, Revold, 2013. ""Fundamental" theorem of privatization: ideology, evolution, practice," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, pages 7-45, December.
    3. Aidan R. Vining, 2003. "Internal Market Failure: A Framework for Diagnosing Firm Inefficiency," Journal of Management Studies, Wiley Blackwell, vol. 40(2), pages 431-457, March.
    4. Alessia Damonte & Fedra Negri, 2019. "Gauging fiscal worlds: how the EU countries balanced equality and wealth between 2007 and 2016," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(4), pages 1675-1692, July.
    5. Richard Batley, 1996. "Public-Private Relationships and Performance in Service Provision," Urban Studies, Urban Studies Journal Limited, vol. 33(4-5), pages 723-751, May.
    6. Xun Wu & M. Ramesh, 2014. "Market imperfections, government imperfections, and policy mixes: policy innovations in Singapore," Policy Sciences, Springer;Society of Policy Sciences, vol. 47(3), pages 305-320, September.
    7. Aidan R. Vining, 2016. "What Is Public Agency Strategic Analysis (PASA) and How Does It Differ from Public Policy Analysis and Firm Strategy Analysis?," Administrative Sciences, MDPI, vol. 6(4), pages 1-31, December.
    8. Jayne Elizabeth Bisman, 2008. "Australian Public-Sector Outsourcing in the ‘Golden Era’: Cost Savings Evidence or Anecdote?," Australian Accounting Review, CPA Australia, vol. 18(2), pages 108-122, June.
    9. Vining, Aidan R. & Globerman, Steven, 1999. "Contracting-out health care services: a conceptual framework," Health Policy, Elsevier, vol. 46(2), pages 77-96, January.
    10. Alexander Radygin & Revold Entov, 2014. "The Fundamental Privatization Theorem: Ideology, Evolution, Practice," Working Papers 0087, Gaidar Institute for Economic Policy, revised 2014.

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