This research review covers the main theories and justifications
for and against state intervention as they have developed over two
centuries. It also incorporates an institutional approach to the
role of the state in enforcing "the rules of the game" of the
economy as well as examining specific issues including market
failure, rent-seeking and regulation. Economists and political
scientists alike will find this to be the ideal guide to the
classic and modern arguments surrounding the state's role in the
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