My hunch is that Schuck PH, Why Government Fails So Often: And How It Can Do Better (Princeton University Press) (2014) deals with your question pretty directly.
Farnsworth W, The Legal Analyst: A Toolkit for Thinking About the Law (University of Chicago Press) (2007) might also be useful. It's clever, and focuses less on "what should the government do to solve 2007-era problems", and more on "how should the legal tools available to deal with any problem be assessed". So, the book's age shouldn't be too concerning.
My hunch is that Schuck PH, Why Government Fails So Often: And How It Can Do Better (Princeton University Press) (2014) deals with your question pretty directly.
Farnsworth W, The Legal Analyst: A Toolkit for Thinking About the Law (University of Chicago Press) (2007) might also be useful. It's clever, and focuses less on "what should the government do to solve 2007-era problems", and more on "how should the legal tools available to deal with any problem be assessed". So, the book's age shouldn't be too concerning.
Hope they're helpful.