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» Road signs.   2004-09-07 20:09 John Humphreys

I don't know if there really is a creature called "most economists" ... except maybe on the issue of free trade. Personally, I find the entire static model underlying TNs framework to be unhelpful in isolation. There are many static inefficiencies that are worth suffering for the sake of keeping the dynamic process of innovation, knowledge discovery, preference evolution etc alive. I have some sympathy with the throw-away comment that economies don't just grow -- they evolve.

In addition, it's worth noting that all markets fail and so simply sighting a market failure is a necessary but not sufficient part of an argument for government involvement.


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