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

  • Addressing externalities
  • Education, environment
  • Regulating Monopoly
  • Overcoming imperfect education
  • Insurance, financial regulation
  • Social Insurance

Activist Functions

  • Industrial policy
  • Wealth redistribution