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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.