Ineffective governmental use of nongovernmental resources
Other Names:
Ineffective use of private sector resources by government Government opposition to private initiative Protection of public sector agencies from competition
Incidence:
Public regulatory policies have inhibited private providers of services. Although not explicitly part of the public budget, these policies can have large effects akin to taxation and spending. There is no uniquely appropriate balance between public and private sector activity. However, governments reduce their ability to broaden access to education and health, for example, when they discourage private initiatives. In the case of housing, in many cities private housing markets have been overly restricted by rent control, which has often produced results exactly opposite to those originally intended.