Market failure happens when free markets fail to allocate resources efficiently, leading to a loss in social welfare. This blog post explores the core concept of market failure, its major causes—including externalities, imperfect competition, public goods, and imperfect information—and how each contributes to inefficiency in real-world markets.
This concept forms the foundation of various social welfare functions in economics, each offering a different approach to how society’s welfare is aggregated from individual utility levels.
Dual federalism, often termed “layer cake federalism,” is a model of governance in which the powers and responsibilities of the federal and state governments are distinctly separated.
The Global Peace Index (GPI) is a measure that ranks countries and regions based on their levels of peacefulness.