Tag Archives: Public Value Failure

Market Failure, Public Value Failure

When the two failures occur simulatanously, you have a serious problem.  See What you don’t know about a drug can hurt you in the WSJ.

“What’s happening in oncology is happening in all other fields of medicine,” says study co-author health economist Scott Ramsey at the Fred Hutchinson Cancer Research Center in Seattle, who checked more than 2,000 chemotherapy trials recorded in the federal registry. “You may not get a full picture of whether a drug is effective or not. With the stakes being what they are in terms of money and human lives, this is a big problem in my view.”

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Cybersecurity – Market Failure or Public Values Failure or both?

The Center for Strategic and International Studies is delivering a report, “Securing CyberSpace for the 44th President,” which notes, among other things, :

“We believe that cyberspace cannot be secured without regulation,”

The report, which offers guidance to the Obama administration, is a strong indictment of government and private industry efforts to secure cyberspace to date. “The laissez-faire approach to cyber-security has failed,” Mr. Kellermann said.

So, the commission concludes the market has failed to secure cyberspace.  And, it has also concluded that current government policy has failed to secure cyberspace.

In the intro, the report reads:

We advocate a new approach to regulature that avoids both prescriptive mandates, which could add unnecessary costs and stifle innovation, and overreliance on market forces, which are ill-equipped to meet public safety and national security requirements.

So, we have reasons why the market fails with regards to cybersecurity.

Not surprisingly, DHS is defending itself against the Commissions’ criticism of how cybersecurity has been managed.

“To be fair, we are undertaking something not unlike the Manhattan Project,” Keehner said. “Billions of dollars are going into this effort. We’re the first to admit there is more work to be done, but the progress that we have made should not be discounted.”

For further reading — see presentations made at CSIS event called

Improving Cybersecurity : Recommendations from Private Sector Experts

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Filed under cybersecurity, Market Failure, Policy

Recession – Market Failure?

a search using the terms “is recession market failure” referred someone to this site.

It is a question to study — and to discuss whether public values failure contributed to the market failure.

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Filed under Economies, Uncategorized

Public Values – Legislation

A letter to the editor in the AJC (which does not support permalinks — so this link will die) raises some issues about a law in Georgia requiring a “comprehensive character education program” (see O.C.G.A. § 20-2-145).

(a) The State Board of Education shall develop by the start of the 1997-1998 school year a comprehensive character education program for levels K-12. This comprehensive character education program shall be known as the “character curriculum” and shall focus on the students’ development of the following character traits: courage, patriotism, citizenship, honesty, fairness, respect for others, kindness, cooperation, self-respect, self-control, courtesy, compassion, tolerance, diligence, generosity, punctuality, cleanliness, cheerfulness, school pride, respect for the environment, respect for the creator, patience, creativity, sportsmanship, loyalty, perseverance, and virtue. Such program shall also address, by the start of the 1999-2000 school year, methods of discouraging bullying and violent acts against fellow students. Local boards shall implement such a program in all grade levels at the beginning of the 2000-2001 school year and shall provide opportunities for parental involvement in establishing expected outcomes of the character education program.

(b) The Department of Education shall develop character education program workshops designed for employees of local school systems.

HISTORY: Code 1981, § 20-2-145, enacted by Ga. L. 1997, p. 1386, § 1; Ga. L. 1999, p. 362, § 2; Ga. L. 1999, p. 438, § 2.

Jonathan Herman wrote the letter, and, among many points, he says:

To be fair, I should say that of the 41 values and character traits articulated in the guide, many of them struck me as innocuous. I don’t really have any problem with “cleanliness,” “fairness,” “honesty,” or “respect for others.”  Others bothered me only slightly, though they left me a bit confused. Why was “moderation” listed, but not “passion?” Why was “cooperation” listed, but not “leadership?” Why are both “honesty” and “truthfulness” included? Are these somehow understood as different qualities? Is it really the charge of public educators to instill
“cheerfulness” in the student? And what on earth do they mean by “virtue?” Aren’t the other forty traits supposedly “virtues?”

Trying to understand which “values” drive what “policy” can be an interesting test of detective skills.  But, what of legislation that directly reflects public values within the text.  You can’t be more explicit than the bill that created OCGA 20-02-145.  And, you cannot have a more explicit example of public values failure than when you measure the outcomes of such legislation.


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Filed under Government, public failure, public values

Market Failure – Public Value Failure : An Intersection

When you have a program, such as the one described in this NYT article on private Medicare insurance, that relies on the market to solve a public value problem, and that program fails — you end up in the total failure quadrant.

(need a picture here)

Private health insurance plans, which serve nearly a fourth of all Medicare beneficiaries, have increased the cost and complexity of the program without any evidence of improving care, researchers say in studies to be published Monday.

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Gold(man) Standard – Market Failure

The big 5 investement bankers asked for a rule change at the SEC — that this article said created a situation where the information that might have predicted the current crisis became invisible.

The man representing Goldman Sachs at the table, then became Treasury Secretary Paulson.

Markets do not operate well when information is obscured.

An example of where market failure is precipitated by public value failure

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