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Canadian Bank Mergers: Questions of Monopoly and Competition. It is generally accepted in the Western industrial democracies that governments have a responsibility for the maintenance of human life among their constituents, in areas ranging from improved mine safety and better airplane safety to medical care and research and reducing highway accidents. The application of the economics approach to this question - through a Cost Benefit Analysis - demonstrates the moral choices involved in the budget allocation of limited resources among a variety of "good" things. However, the operative word in the above question is "can", for almost invariably the government "will" set spending priorities, in response to forces of political economy, with little input from a Cost Benefit Analysis. This paper will argue that such a process is intrinsic in the nature of government resource allocation, and must be considered along with the economics approach to this question. 8 pgs. 9 f/c. 7b.
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