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Following up on Tony Brewer's comment, two of the best places to
start are J.S. Mill's Principles of Political Economy and Henry
Sidgwick's Principles of Political Economy. There is a nice line of
thought regarding the recognition of the potential extent of market
failure that can be traced from Mill, through Sidgwick, to Pigou and his
Economics of Welfare. There are certainly other relevant primary
sources for this period, but I would suggest that these two are perhaps
the most important in terms of marking a turn of view from Smithian
natural liberty to a more wider recognition of market failure.
Steve Medema ([log in to unmask])
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