1/2: ClassicRichardEpstein: How to spend infrastructure. @RichsrdAEpstein

Photo:   Middle Bridge, Spanning Osage River, Warsaw, Benton County, Missouri

In neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient, often leading to a net loss of economic value


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1/2: ClassicRichardEpstein: How to spend infrastructure. @RichsrdAEpstein

https://www.hoover.org/research/infrastructure-distortions

Pro:  Once those roads, rails, pipes, and wires are acquired by the state, they are often subject to traditional common carrier obligations of universal service at reasonable rates, whether the state retains operational control over these facilities or transfers them to private parties. The use of state power for infrastructure is thus tied to a credible theory of market failure.