Market failure

Market failure – Domains of the economic activity in which the market is unable to commit rational allocation (displacement) of resources and offer an appropriate solution to problems, due to which the intervention of the state (today, in the form of state, i.e. Government regulation ) becomes inevitable. Practically, in these domains market not only does not dismiss, but, on the contrary, it generates problems. Thus, for example, pollution of the environment, as a typical domain of market failure, occurs because the market forces firms to reduce production costs and maximize profits, which is why they avoid installing air treatment filters, or chemical and biologically purify wastewater. In contemporary economic science, it is usually spoken of six domains of market failure: uneven and socially unacceptable allocation of income, public goods, externalities (negative and positive), markets with asymmetric information, presence of monopolies and the existence of macroeconomic instability (high inflation, high unemployment, etc.). In the Republic of Macedonia, viewed from a microeconomic aspect, market failure was particularly pronounced in two domains: negative externalities, i.e. Pollution of the environment (to a significant extent and as a result of the disregard of the existing regulations in this area) and the presence of a monopoly (a typical example, although not the only, are telecommunications, in which the state monopoly was replaced by private but without, before, before, before, before, before, before To perform deregulation of the sector and establish the necessary regulatory institutions). The macroeconomic plan, high and persistent unemployment occurs as a picar domain of market failure. In the transition period, the basic regulatory institutions (commissions, agencies, etc.) have been established, which have the task of mitigating the domains of market failure (c. State, government regulation of economic sectors). Lit.: P. Samuelson and News. NORDHAUS, ECOOOMICS, EIGHTENEH Editon, McGle-Hill International Edition, 2005, 341-350; J. Stiglitz, Principe D’ergonomie Mode, 2è Editorion, De BoGK University, Paris – Brugelles, 2000, 359431; 455-467. T. F. “Green Market” in Skopje


Original article in Macedonian language Cyrillic alphabet
Кириличен напис ПАЗАРЕН НЕУСПЕХ

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