The Limits of Market Efficiency

James Buchanan
2011 unpublished
The framework rules within which either market or political activity takes place must be classified in the non-partitionability set under the Samuelson taxonomy. Therefore there is nothing comparable to the profit-loss dynamic of the market that will insure any continuing thrust toward more desirable rules. 'Public choice' has at least partially succeeded in getting economists to remove the romantic blinders toward politics and politicians as providers of non-partitionable goods. It is equally
more » ... ecessary to be hard-nosed in evaluating markets as providers of non-partitionable rules.