Market failures and economic crisis in perspective Covid-19

Abstract

This article explores analytical areas related to the conditions that must exist for societies to lead towards decisions that promote efficient resource allocations and therefore achieve a scenario of maximum well-being, contextualizing these analyzes in the socioeconomic scenario indicated by presence of the Covid-19 crisis in Chile. The objective is to analyze the socioeconomic conditions under which economic actors behave in contexts of high uncertainty, signaled by crisis situations. The analyzes are developed based on secondary information where it is possible to identify the behavior of the developed market based on the different situations that occurred in the course of the pandemic, identifying the market failures that occurred and extracting lessons from the operation of policies and interventions in the crisis context. In this framework, the approach is qualitative, not experimental, with a descriptive scope, characterizing facts and phenomena in a transversal temporality. Thus, conjunctures related to the pandemic are analyzed that reveal the existence of market failures as limiting social welfare, proposing to do so the availability of instances of public-private articulation for the collective construction of social welfare, in public balance and private, as well as the importance of strengthening decentralization, to promote flexibility, agility and relevance of policies at the local territorial level.