The Scope of State Functions

Minimal Functions

1.Providing pure public goods

2.Defense, Law and order

3.Property rights

4.Macroeconomic management

5.Public health

6.Improving equity

7.Protecting the poor

Intermediate Functions

1. Addressing externalities
2. Education, environment
3. Regulating Monopoly
4. Overcoming imperfect education
5. Insurance, financial regulation
6. Social Insurance

Activist Functions

1. Industrial policy
2. Wealth redistribution