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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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