The inability of the market system to produce certain benefits at all or produce them in desirable or optimal quantity.
It is manifested as a result of non-exclusive and (or) non-competitive consumption of goods. Inclaritivity means that individuals who have not paid benefit cannot be prevented to use it. For example, everyone uses the benefits of clean air regardless of whether they made the contribution to the fight against its pollution or not. In this case, individuals will not pay for the benefit that they can get for nothing, and, therefore, the market exchange system does not work. The consumption of good is non-competitive if its consumption in one individual does not prevent consumption by any other individuals. Again, the pleasure of inhalation of clean air is non-competitive. In this case, charging the board preventing the consumption of goods is impossible, since the goods are affordable and free for anyone. In this case, the market system cannot provide an optimal level of consumption. In real life, we often encounter benefits, the consumption of which is partially competitive, and partially uncomfortable. If there are external effects, the market may be unable to ensure the optimal level of production, although some economists believe that this problem can be overcome through bargaining of all stakeholders.
The presence of market failure is often considered as an excuse for state intervention in market processes. The general principle is that if a certain entity in the economy is needed to receive any good (or in the termination of the forced consumption of antiboge), and this need can only be satisfied with the interaction of at least another subject, for this The benefits (or antibuga) must exist the market and the price should be installed on it. This condition must be performed for any good (antibuga), whether bread, factory smoke or national defense. In the first case, we are dealing with standard private blessings, in the second - with an external effect, in the third - with public blessings. In order to be achieved by the optimal pair of the distribution of resources, prices should be established on all of the listed benefits (antiboge); In the absence of markets of these goods (antiblag), subjects may not be able to inform other subjects about the possibility of imprisonment of mutually beneficial transactions ensuring an increase in the well-being of both parties.
Labor market
2. The labor of labor - in a narrow sense - the place where the transactions are made between the employer and the seller of labor. Labor - the scope of the formation of supply and demand for labor. The labor force is carried out through the labor market for a certain period.
The main components of the labor market are:
Demand for labor and supply of labor;
Labor cost;
Labor price;
Competition between employers and workfoots, employers and employees
The subjects of the labor market are:
Employers and their representatives (unions);
Employees and their representatives (trade unions);
The state and its authorities: the Ministry of Labor and Social Protection of the Population, Departments, Committees and Departments of Labor and Employment, etc.
There are external and domestic, open and hidden labor markets.
3.Political abstensity
Modern application of the term: "Abspeatism" is one of the forms of conscious boycotting by electoral voters, refusal to participate in them; Passive protest of the population against the existing form of government, political regime, manifestation of indifference to the exercise of the person of their rights and obligations. In a wide range of abstensity, it is possible to understand the fact of an indifferent attitude of the population to political life, the philistine representation of individual people about the fact that nothing depends on them in politics, the policy is "not my business", etc. A good idea is contrary to the basics of the constitutional system of the Russian Federation . If "man, his rights and freedoms are the highest value," their manifestation in political life implies a refusal of absenteeism, apoliticalness. Article 32 of the Constitution states: "Citizens of the Russian Federation have the right to participate in the management of the state management of both directly and through their representatives." But this right in unity with the freedom of man gives him the opportunity for non-participation in political life, the election campaign. Thus, abssentitimism acts as a sign of human freedom in society.
But freedom from non-participation in political life turns into the formation of missing consciousness, indifference to socio-political affairs of society and the state. Therefore, possessing a common and political culture, a person is obliged to freely implement his rights in political life. Mass abssentityism can blow up democratic society management mechanisms, to make the population by the object of manipulation, absolutely subject to "versham", form a passive personality.
1. The main causes of abssenttenance
Absenteism is a natural historical phenomenon, an integral attribute of the political system, built on the principles of democracy and freedom. It is the phenomenon of the political life of any democratic society and the legal state, which has joined the descending branch of its development. The widespread dissemination of absenteeism, both in the countries of classical democracy and those that have recently entered the path of democratic development, is associated with the increase in dysfunctionality processes in their political systems, the exhaustion of the creative potential of the historically established democratic institutions, the emergence of a "subject" type of political culture in wide masses Under the influence of media. The scale of absenteeism and the form of its manifestation are directly related to the historical conditions of the establishment of democracy institutions, with differences in the mentality of peoples, with the existence of various traditions and customs in this society.
The problem of absienately belongs to those problems of sociological knowledge, which over the past decades is in the center of attention of both domestic and foreign sociologists, exploring the processes occurring in the political sphere of society. This is due to a number of objective and subjective reasons, among which, first of all, it is necessary to name four main.
The first reason is as follows. Social practice convincingly indicates that the participation of the population in the political process and, above all, in the formation of elected authorities, is a condition for the successful functioning of any society built on democratic principles. None of the scientists and politicians committed to the principles of democracy makes doubt on the fact that the exclusion from the active political life of representatives of certain social groups, an increase in those who deliberately distance themselves from politics, inevitably prevents the formation of civil society structures, negatively affects efficiency activities of elected authorities.
For almost everyone, it is obvious that the growth of the number of abssent traces is a certificate of imperfection of the current political system, an indicator of incidence of democratic institutions, an indicator of increasing social tensions in society.
The second reason. As you know, one of the characteristic features of the political life of post-industrial society is a sharp decrease in the political activity of citizens. The increase in the number of abssentstairs is fixed in almost all highly developed countries in economically, since England and ending with Japan, it can be argued that abstensity has become a kind of "visiting card" of the newest time.
The number of absintheists and in Russia is growing, where in the elections of various levels do not participate from 40 to 70% of potential voters, while in the late 80s - early 90s in the elections of deputies of the Supreme Council of the RSFSR, and then deputies of the first and second state Duma RF participated more than 85% of voter lists.
The number of those who do not want to participate in the elections of the regional authorities, heads of local governments are growing in a particularly rapid pace. Today, there are cases when the local legislative bodies are accepted by acts in which elections are recognized as held if 20-25% of registered voters participated in them. Obviously, the decline in the number of citizens participating in the voting translates the problem of the legitimacy of power into the practical plane, which today is aware of many as the main problem of the modern stage of the development of post-industrial society.
Third reason. The political figure who did not receive support for most of the population cannot be considered as a carrier of legal authorities, which usually leads to destabilization of the social organism, generates numerous crisis phenomena
the fourth reason did not work out a single point of view on the nature of abssent it; There is no clear idea of \u200b\u200bthe main reasons forcing individuals to make decisions "do not participate in politics in general" and in elections in particular; The opinion was not formed and on how abstensity is associated with the form of government, with the effectiveness of the activities of the institutions of the state, family, education, etc.
The main reason for absenteeism is unacceptability for a part of the social system voters, the institution of elections, the lack of interest in politics and the need to engage in political activities, and not the difficulty of technical or organizational order, as a number of Western authors approves.
2. Types of political absix
passive abssentityism - low political and legal culture of certain segments of the population, generating indifference to the political process and alienation from it and active abstentivity - the result of refusing to participate in political elections, for example, disagreement with the issuance of a referendum, negative attitude to all candidates for the presidential presidential elections, etc.
Abspeatism is a type of electoral behavior that is very diverse. The latter is manifested not only in participation or non-participation in the elections, but also in evading voting, as well as in the "indifferent" (conformal) voting, in protest voting, etc. Each of the above forms of voter behavior testifies to the adoption or refutation of a whole complex of social and political standards and values. Electoral behavior is implemented in political processes that disclose the development dynamics and changes in the political system institutions, the scope of the participation of various groups of the population in political activities.
Electoral behavior is just one of the forms of political behavior. Electoral behavior is not "participation in power", but the value-orientational activity on the selection of a certain political force that exists in the form of or political institution or personalized appearance. This activity unfolds throughout the conscious life of a person and does not boil down to behavior during the election campaign or at the moment of voting.
Absenteism is, first of all, conscious avoidance of voters from voting for political reasons. This concept is significantly different by the concept of "non-participation in voting", which is widely used by sociologists and political scientists to describe the processes occurring in the political sphere of society.
Absenteism is an indicator of alienation of citizens from power and property, a form of a political protest against the current political system, a political regime, the forms of power, approved by the public system as a whole.
Abspeatism in its extreme manifestations acquires the features of political extremism. The fruitful soil for the expansion of extremist sentiments is social crises and conflicts, the percentage of violation of democratic rights and freedoms, the wreck of moral landmarks, values \u200b\u200band the state of the anomium.
Political extremism and abssentitis are manifested in the environment of the most active part of the population. Changes in the current political situation is the main direction of their activities. With the intersection or coincidence of the political aspirations of extremists and abssent traces, extreme forms of political transformations are possible. It may seem that the "silent" and "passive" constitute a minority in society, but at a certain point, for example, in elections, it can show itself as a "silent majority."
The idea of \u200b\u200babsutencey as political indifference is deceptive. Mass disappointment is able to change anything equally to the exhaustion of active potential. Most likely, we are dealing with a peculiar sublimation of political activity, with its transition to the latent form. Voter abstensity reflects not a rejection of policies as such, but the rejection of the affirmative methods of political action. Such an assessment suggests that with the next exacerbation of the political situation or any serious turn to other methods of implementing policies, the potential energy of the masses can transform into a political action.
Many factors, including the type of elections, the peculiarities of the region, the particular campaign, the level of education, the type of settlement, the type of political culture, which dominates the society, and the type of electoral system, are substantially influenced by voters. The level of voter's participation in the voting is lower in countries where a majority or majoritarian-proportional system of methods for calculating votes is applied, and higher in countries with a proportional electoral system.
The practice of developing a political process in Russia speaks of unpredictable, and sometimes the opposite expectations for the nature of the behavior of the Russian voter. In recent decades of the 20th century, the trend towards the weakening of the relationship between social status, belonging to a certain group and the electoral choice says that there is no correlation between the political choice, the socio-professional affiliation and the social status of the person, which takes this choice. This is the distinctive feature of the development of the political process in Russia. The problem of absienately is one of the key problems of Russian democracy. The rapid expansion of absenteeism in recent years speaks of the instability of the political system established in Russia. The decrease in electoral activity is, first of all, the expression of the disappointment of the population in the Russian electoral system, loss of confidence in power, evidence of the increase in protest capacity in various social groups, nihilistic attitude towards democratic institutions, political parties and their leaders.
Absenteism is in any society: developed and underdeveloped, democratic and totalitarian, etc. Its causes are diverse: the disbelief of citizens into the effectiveness of political institutions; lack of political culture; The struggle for situational satisfaction of interests and others.
The emergence of absenteeism as a phenomenon of Russian political practice is associated with a number of objective and subjective factors, including the main deformations in the political system of society, a fall in confidence in public authority institutions, a decrease in the importance of democracy as values \u200b\u200bfor representatives of various electoral groups.
In this way:
1. The number of absintheists is directly dependent on the type and level of elections.
3. Investigative position and social well-being are not the main factors that determine the choice of the individual of the abssent course of behavior. The choice of abssent genetic type of electoral behavior is determined primarily by the causes of political order.
4. The scale of abssently in various ages is varied. A significant proportion of abssent traces are women aged 30-49 years, having a high level of education, high social status.
5. In the absintheist environment, two main groups can be distinguished, demonstrating different types of electoral behavior: a) a group of radicals and b) a group of conformists.
6. As the role of democratic institutions and building the rigid vertical of power will increase the amount of abssent traces.
Weakness (insolvency) of the market - This is the inability of market mechanisms to solve some economic tasks in general or in the best possible way.
Causes of Weights (Insolvency) of the Market:
1. None of the sellers or buyers should not be able to influence the formation of prices to more than the other market participants;
2. The impossibility of conspira among sellers, on the one hand, and buyers, on the other, in order to maintain more favorable terms of transactions;
3. All market participants must be accessible information on the state of affairs on it;
4. The impossibility of the intervention of the state or public organizations into the work of the market for political or religious reasons.
Forms of manifestation of market weakness:
opportunities in market monopolization;
difficulties in creating public goods;
inequality in income or wealth;
the presence of external effects.
12. 6. External effects. Theorem Kowuza
INeffects(Externlia) - Effects (consequences) of the production or consumption of good, the impact of which on third parties who are neither buyers nor sellers are not reflected in the price of this good.
External effectsthere are negative (costs) and positive (benefits).
Negative External effects are the costs that firm shifts to other enterprises or society as a whole.
For example: the enterprise pollutes the atmosphere with its emissions, resets their waste into nearby reservoirs. Consequently:
the population is ill. For treatment they pay either themselves, or the state assumes the costs of water treatment, soil, waste recycling, etc.
fisherover enterprises carry large losses from contamination of water reservoirs of production. They either humble with losses, or organize their own security, security service, they themselves cleared by others, or try to lobby in power structures so that they change the legislation so that in the future carry less damages.
The cost of reducing the harm caused by others is internalizationexternal costs(Turning them from external to internal).
The main methods for regulating negative external effects are as follows:
administratively - legislative control;
indirect intervention of the state or the creation of incentives to limit undesirable activities (Pig, subsidies, compensation for damage caused, etc.);
Pig tax It is installed on each unit of products manufactured by an enterprise producing a negative external effect. In order for the tax completely compensated for negative consequences of production, its value t.it should be equal to external limit costs at a socially optimal release (Fig. 12.2).
Figure 12.2. Negative external effects
MPC - limit private costs;
MEC \u003d. t. - limit external costs;
MSC \u003d MPC + MEC - Limit public costs;
MSB - Limit public benefits;
MSB \u003d MPC - Market balance;
Q p - the volume of production without wastewater treatment plants at the price of PP.
Thus, in the presence of a negative external effect of products, it is produced more compared to the effective amount, but at low prices. If it would be possible to turn external costs to internal, then the volume of the release would decrease to QS with price increase to PS (MSB \u003d MSC).
Positive external effects - The effect arising in the case when the activity of one enterprise brings benefits to others or society as a whole. Thus, with free qualitative education (the expenses of the state, parents of children and students), entrepreneurs (especially foreign) receive a more productive work force, the use of which gives more income (Fig. 7.2.2).
Fig. 12.3. Positive external effects
MPB - limit private benefits;
Meb \u003d G is a corrective subsidy;
MSB \u003d MPB + MEB - Limit public benefits;
MSC - Limit public costs.
If there is a positive external effect QP products are sold and bought in less compared to the effective amount QG, (i.e., there is an unreower product and services with positive external effects).
Theorem Kowuza - The concept according to which the problems of external effects can be effectively solved by direct agreements between stakeholders and do not require state intervention, provided that:
property rights are clearly defined;
the cost of the transaction is relatively small;
the transaction involves a small number of sides.
Theorem Kowuza It claims that the regulation of negative external effects can be carried out without state intervention in the form of compensation by the source of negative external effects of the affected party.
Insolvency of the market and the role of the state
The first manifestation of the insolvency of the market is as follows: the result of the market activity depends on the decisions that buyers and sellers accept. However, sometimes these solutions affect the well-being of people who are not related to this market. There are so-called external effects (externalities), when equilibrium on the market may be ineffective for society as a whole.
The second manifestation of insolvency lies in the inability of the market to ensure the production of public goods.
The third manifestation of insolvency: most markets are characterized by serious violations of competition power over the market, or monopolism.
And finally, the market is untenable and in achieving a fair distribution of income.
To overcome market insolvency, a state comes to the rescue of the economy, which seeks to solve two interrelated tasks:
1) ensure the normal functioning of the market system;
2) Solve sharp social economic problems.
There are two situations of a sharp violation of the functioning of the market system:
the competitive market system produces "not the" number of certain goods and services that are necessary to society (i.e. allocated "not that" the number of resources);
competitive market system is not at all able to allocate resources for the production of some goods and services.
External effects
The first situation is related to the presence of external effects.
The external effect (external) occurs when some benefits or costs associated with consumption or production of goods are "moved" to persons who are neither buyers nor sellers (manufacturers) of this type of goods. They, therefore, can not be reflected in the demand curves and suggestions of this type of goods.
In other words, the market is unable to catch all costs or benefits that occur during the production or consumption of any product: they arise "outside the market. Thus, the market is not able to distinguish the optimal amount of resources for the production of optimal, from the point of view of society, the number of goods.
Externalities arise both in connection with the production of goods and services (negative) and in connection with consumption (positive).
The external effects associated with production occur during the production of some goods, if the private costs of firms (private costs reflect the curve s in Fig. 9.3) less costs of society as a whole).
An example of negative external effects can be pollution of the environment of the metallurgical, chemical industry, etc. Fig. 9.3 shows that if all costs were reflected in society's expenses), then the optimal volume of products would be less (BOT ™< Qe), чем производят фирмы, следовательно и загрязнение окружающей среды было бы меньше. Государство может решить эту проблему двумя путями:
in the legislative procedure, the norms of pollution, forcing the firms to build treatment facilities (which will cause an increase in their costs and reduction of the proposal) and thread them for violations;
introduce a special indirect tax (Pig tax), which increases the cost of the company and shifts the proposal of the proposal to the left (in Fig. 9.4 from the position S to the SR, Tnalog position).
The second way makes it possible to transform external effects into the internal costs of production (this method is called internalization). Some economists believe that this method of solving the problem of external effects is preferable. First, it is associated with the use of the state of market methods (consequently, excludes corruption). Secondly, funds collected in the form of tax allow the state to exercise the costs of environmental protection. In both cases, the volume of resources sent to these industries will decrease.
The external effects associated with consumption arise in cases where the benefits obtained by the Company from consumption by people of certain goods and services cannot be fully reflected in demand market curve (in Fig. 9.5 Do6L4ECRA.\u003e D), therefore, The market allocates too few resources and cannot provide the production of optimal volume of products (QE< боптим. на рис. 9.5).
The state can use one of two options for in-terminalization of positive external effects:
1) Subsiduding consumers to increase demand (the market demand curve in Fig. 9.5 will be shifted to the right to the DO6L4ECRA position, 5 equilibrium price will increase to P °, which will ensure the production of bopid market.);
 |
If the positive external effects are very high, the state can turn the data of the industry to their property or assume their financing (products of such industries are called quasocial benefits). Examples of such industries are:
public health;
state housing construction;
libraries, museums, streets, highways, etc.
Public benefits
The second situation of violations of the functioning of the market mechanism is due to the fact that competitive markets are not at all able to allocate resources for the production of public goods.
The objects of the market mechanism are private benefits. Private goods are divisible and are subject to the principle of exception (receives the goods one who wants and can pay for the market price).
But there are products and services that are indivisible and are not subject to the principle of elimination public goods. (The principle of exception is distributed to the quasocial benefit, but they are indivisible.)
In addition, the benefits of private benefits are implemented as a result of their consumption, and from public goods as a result of their production. The most typical examples of public goods:
national defense;
environmental protection;
national Parks, etc.
The resources necessary for the production of public (and quasocial) benefits are allocated on the basis of political decisions and are funded from the state budget (at the expense of taxes).
In previous topics, the situation of market failure, the inability of the market mechanism to ensure efficiency, that is, the maximum aggregate welfare due to the inability to ensure effective placement of resources, efficient prices and / or effective production volumes.
Most solution from those problems required government intervention. But the practice of active participation of state power in the economy, the experience of the implementation of numerous state programs (starting from 30 pp. XX century) proved that state power is not always able to correct market failures, it can also be untenable.
Failure of state power means its inability to provide:
a) efficiency - that is, the optimal placement of resources, effective prices and production volumes (that is, the inability to solve the problems of market failure);
b) Justice - that is, the compliance of the government policy distribution of income by the ideas of justice that dominate society.
Traditionally, four main reasons for systematic failure to achieve the declared goals of state intervention are distinguished:
1) insufficient awareness (asymmetric information) - the government should never on time all of the information necessary for the adoption of the best political decisions; All the desired information for limited time cannot be obtained even technically, moreover, there are groups of interests that are not interested in supplying full and reliable information.
2) limited control over the reaction of the private sector, the inability of government structures to fully predict the remote consequences of the decisions made (although the analysis of solutions on the expense method can reduce the number of erroneous solutions). For example, an inability was observed to provide for a rational reaction of entrepreneurs, entire sectors of the industry for the establishment of super-high taxes, the purpose of which was considered to reduce the budget deficit.
3) the limited possibilities of society for the control of the authorities with power structures; There is always a threat to the excessive growth of the state apparatus, the entire public sector, therefore, the increase in costs for its content and losses in efficiency. A common situation when the Parliament accepts some kind of general decision, and its detailed processing, the development of the Introduction mechanism instructs certain government agencies; Consequently, society becomes the hostage of officials who are often not in a hurry to develop the necessary regulations.
4) the imperfection of political processes, in particular, when making political decisions, after all, a fairly limited circle of individuals is engaged in directly adoption. Rengorienting the behavior of politicians and entrepreneurs, lobbying political decisions by groups of special interests, the practice of mutual support to each other politicians - all this in most cases leads to inconsistent decisions that do not correspond to the interests of society. It should be noted that the inconsistency of the decisions taken, which is observed quite often, without rear, as a manifestation of an evil will of politicians, is the natural consequences of democratic decision-making, the consequences of the functioning of political institutions of a democratic society.
The dilemma of choice between the inconsistency of the market and the inability of power So, when politicians and economists are trying to eliminate the lack of market mechanism with the help of state intervention in the work of the self-regulating market, they are found with the problem of state deficiencies. Therefore, there is a large discrepancy between opinions and views regarding the volume of state intervention in the economy. These views on the effectiveness (and, accordingly, the inability) of the market and public authority can be simplified using Table. 12.1.
Table 12.1.
Various views on the efficiency of the market and state power
Sight BUT The market efficiency proceeds from the regulatory analysis of the general equilibrium and the economic theory of well-being. It provides minimal state intervention (after all, it is not necessary), and this intervention does not lead to loss of efficiency, that is, it is also quite effective. By the way, in position A, you can add supporters of fully centralized optimal planning, which tried to theoretically substantiate the possibility of practical construction of the optimal price system, corresponding to the state of general equilibrium, and the introduction of optimal planning into the practice of public institutions. But the experience of countries of all socio-political systems has not confirmed the possibility of management according to the concept BUT.
Sight B, According to which the preference is always when it is possible to provide market mechanisms to solve social problems close to monetarist concepts, it was sufficiently disseminated in 30 pp., To the Great Depression, and again attracts attention in recent decades due to insolvency state power, low efficiency of state intervention measures.
Sight IN, Supporters of which can be attributed to Keynesians, spread together with the success of the practical implementation of the Keynes theory. It can be clearly considered that theorists and apologists of the planned economy and state ownership, the greater "manageability" of the economy in the transition period, also belong to the camp IN (The conventionality of this classification is explained by the fact that most of the latter have a rather vague idea of \u200b\u200bthe analytical level of modern economic and other social sciences).
Finally, position G. The most common among economists and politicians. According to this position, the presence of insolvency of the market and state power and the practical inability to achieve the ideal state of the economy is recognized. We can only talk about a balanced policy of using various tools, the search for a kind of "second best" due to the impossibility of finding the "best." A practically such a compromise choice between two insolvenge groups is becoming a public choice, which is regularly carried out in various states and is periodically adjusted (by Democratic elections and changing political parties in power), then towards greater state intervention and active social policy, then towards the liberal model of social development.
Theory of asymmetric information - One of the most important achievements of modern economic theory over the past decades. This theory is based on the fact that often one of the parties to economic relations is aware of worse than one of the situations that most often meets - the model of the relationship of the customer and the Agent - when the actions or properties of one of the parties to economic relations hidden from The other side. Asymmetric information is present in many markets, when the characteristics or properties of goods are not fully known to the consumer. The problem of asymmetric information is present in the relationship between the working and employer, the tenant and the landlord, the insurance company and its client. In the financial market, the situation of asymmetric information arises in the relationship between the creditor and the borrower, the owner (shareholder) and the Corporation manager, finally the owner and the creditor, etc.
The current example of the manifestation of asymmetric information in the market of goods is the car market for used (although similar properties can be found on a large number of other markets).
Suppose that there are only two types of cars on the market - high-quality and poor-quality. The rear consumer is ready to pay 20 thousand hryvnia for a high-quality car and 5 thousand hryvnias - for poor quality. If buyers have full information about the properties of cars, that is, they can distinguish high-quality and poor-quality, exist two separate markets, each of which will be their prices. Real is the situation when the buyer does not know exactly what kind of car it is offered to him.
Asymmetric information can be observed in many markets. For example, in the insurance market, if the insurance company cannot distinguish clients with different characteristics (in this case, in a different probability of an insured event), it will set the overestimated dimensions of insurance premiums, which will eventually result in potential customers with better characteristics refuse insurance services. As a result, it will hit the insurance company, since only customers with a high probability of an insured event should be accessed by insurance services.
Another example is bank lending. Suppose that the bank has two types of customers - reliable (take loans to implement projects with low risk, but also relatively low income) and risky (implement high-yield risky projects). The bank is ready to finance the first under 10% per annum, the second - under 40% per annum. The bank will use different loan rates if it can distinguish clients and the level of risk of their projects. If this is not enough information, the bank will use a single lending rate - let it be 25%. But such a bet for borrowers with low risk is beneficial - they will simply refuse lending. Credit will be only high risk borrowers. As a result, problems will appear in the bank, because its interest income overlap losses associated with the irrevocate of loans.
Market participants can make measures to overcome the problem of asymmetric information. It may be monitoring or signals.
Monitoring - These events are worse than the informed side in order to get more information. Buyer of the car, used, can use the help of an experienced mechanic. Insurance company, insurance life, may require a medical examination from the client. The bank, issuing a loan, can check reporting and control the use of funds.
Signals - These measures from the side of the best part of the informed side, which it does, if the asymmetric information is not beneficial to it, the seller of high-quality cars is interested in bringing information about his goods to the buyer. The conscientious borrower would like to get a loan with a low rate and therefore the bank has the most complete information about himself. The signal will perform its function if it is perceived by the counterparty as objective information. Let's say it is not enough to simply tell the buyer that there is a high quality car in front of him. At the same time, the provision of warranty can be an effective signal. Information on the formation of a potential employee may be, but may not be an effective signal for the employer (this may depend, for example, on which the educational institution graduated from the applicant for the workplace).
Created or not to monitor solve the problem of asymmetric information depends on what costs it is necessary to incur for the implementation of such events. However, for example, the cost of obtaining education, as a rule, is bought by the ability of economic agents to operate rationally under conditions of asymmetric information.
Why do such non-efficiency problems arise in market coordination?
1. The mechanism of supply and supply orienses production on the current system needs. Such a system is static. Dynamism is made by an entrepreneur whose interest is wider than just the interest of maximizing benefits (self-realization, success, risk tendency, etc.).
2. Market system based on the domination of private interest. Such a system does not allow to satisfy a number of social needs and does not automatically forms a favorable public climate for entrepreneurship.
How are these problems solved? Firstly, through the development of institutional business structures. A system of strategic planning carried out in large corporations - the centers of economic power is formed. They implement the systematic distribution of resources in the interests of long-term development. Secondly, The state as an economic entity assumes the fulfillment of a number of economic functions to meet all types of needs.
Market failure - This is a situation in which the market is not able to coordinate economic selection processes in such a way as to ensure the effective allocation of resources. To similar "market failures", which are intended to compensate for the state include:
1. Since the market is focused on the satisfaction of effective demand, it does not provide the production of a number of public consumption goods, which there is no individual solvent demand (protection against flooding, vaccinations from hazardous diseases, law enforcement, defense, etc.). Arises the problem of the production of public benefits.
2. Market coordination is based on the fact that the money price adequately reflects the value of goods and resources. However, in real reality, the consumption of some goods is accompanied by additional effects that are not captured by the price (pollution, etc.). Market prices do not reflect the benefits and losses of third parties, which leads to an inefficient distribution of resources. There is a problem of external effects.
3. The market implies widespread dispersal of economic power and competition itself is not able to prevent the process of competition in a monopoly. Arises the problem of maintaining competition.
4. The market, which is based on private interest, generates fluctuations in production. Arises the problem of unevenness.
5. Distribution of income The market system is a consequence of resource allocation and therefore it is extremely uneven.
6. The market assumes that business entities receive all the information they need and are able to make a rational economic choice on its basis. In fact:
· People do not have all the full information (on specific benefits, on substitutes, on the harmfulness of production, etc.). Therefore, the state and public organizations (consumer societies, unions of facilitating small businesses, the "Green" movement) take on the function of collecting and reporting information to people, thus contributing to the adoption of more informed decisions.
· There is a problem asymmetric informationAs a result of which the costs and benefits appear that were not stipulated at the conclusion of the transaction (hidden defects, hidden consequences of long-term exploitation, etc.), the high risk of opportunistic behavior of economic entities, which prevents the conclusion of mutually beneficial transactions and the effective allocation of resources. The state is designed to create institutional conditions for a more uniform movement of economic information: firstly, legislation on the provision of information; secondly, standard contracts, clear procedures for concluding transactions.
