Iscuss to what extent it is necessary for the government to regulate the market?

1. Discuss to what extent it is necessary for the government to regulate the market?

Capitalism is always under attack from various quarters, especially so in the current economic climate. There are those who fundamentally oppose free markets, usually on the grounds of fairness/equity, to those who believe in markets but also think it is desirable that they are regulated to some extent. Clearly, there are others who believe that unfettered markets are the most desirable economic mechanism. In tackling this general debate, you may want to compare and contrast two areas of your choice which offer contrasting cases for regulation, establishing why one requires more regulation than the other.


The two areas I have choosen are:
1 Banking in the financial sector
2 Education in the public sector

Compare these two cases which offer contrasting cases for regulation explain in detail why financial markets require more regulation than educationn sector or why education sector need more regulation than financial sector.


Libertarian beliefs and views are set out by Nozik, Hayek, Friedmanpolitical and economical freedom is best provided and guaranteed by the free market (free to choose) Friedman & Friedman) widely dispersed information & power signals and incentives
1 extreme libertarian Nozik (1974)
2destructive government (slippery slope) minimal role-the state is wasteful (nightwatchman)
These are the things that could be mentioned as i mentioned it in my essay plan.Is more political terms however economical terms will also be required.

Note: the attachment is from lecture might be usefull

Thank you very much in advance
use N Barr (2004) The economics of the welfare state, 4th edition, Oxford.Oxford university press

SJ Bailey (1995) Public sector economics: Theory, policy and practice, Macmillan  Ch 2
N Barr (2004) The economics of the welfare state, 4th edition, Oxford University Press  Ch 4
S Connolly & A Munro (1999) Economics of the public sector, Prentice Hall  Chs 4&5
Economist (19/5/2001)  Fuel taxes, p107


SJ Bailey (1995) Public sector economics: Theory, policy and practice, Macmillan  Chs 7, 8 & 13
N Barr (2004) The economics of the welfare state, 4th edition, Oxford University Press  Ch 4
S Connolly & A Munro (1999) Economics of the public sector, Prentice Hall  Chs 8, 9 & 21
IV Sawhill (1995) Distinguished Lecture on Economics in Government  The economist versus madmen in authority, Journal of Economic Perspectives 9(3)
JE Stiglitz (1998) Distinguished Lecture on Economics in Government  The private uses of public interests: Incentives and institutions, Journal of Economic Perspectives 12(2)
N Barr (2004) The economics of the welfare state, 4th edition, Oxford University Press Chs 13&14
S Connolly & A Munro (1999) Economics of the public sector, Prentice Hall  Ch 20
J Dutta, J Sefton & M Weale (1999)  Education and public policy, Fiscal Studies 20(4)
E Keep & K Mayhew (1999)  The assessment: Knowledge, skills and competitiveness, Oxford Review of Economic Policy 15(1)
S Machin & M Stevens (2004)  The assessment: Education, Oxford Review of Economic Policy 20(2) [Many other articles in this edition are relevant including those by N Barr and A Wolf]