The Limits of Government

When and why does government interference in the market process succeed and when and why does it fail? The limits of government and the consequences for economic growth of government interference in markets are the central themes in this book. Theoretical as well as case-oriented empirical studies are included. The anthology contains selected papers presented at the Sixth Conference of the International Joseph A. Schumpeter Society in Stockholm.There is no way to understand how an economy at large behaves without taking a close look at the actors who make it behave. There is no way to understand the agents operating in markets without placing them in the context of the institutions that determine the incentives that pull, and the competition that pushes, them in different directions and together coordinate all actors into a fairly consistent macro-economic whole. This also means that successful policymaking, whether directed at the macro or micro levels of the economy, demands insights on the part of the policymaker that go far beyond what mainstream economic theory is capable of providing.The volume is divided into two parts: Theories of State Interference and Consequences of State Interference and Non-Interference. The volume is remarkably current, including essays on Microsoft versus Netscape; Russia's Agrarian Dilemma; the Expanding Public Sector; and a contribution to fundamental economic policy analysis concerning prospects for democratic capitalism. The volume is serious, concrete, rich in statistical data of present-day worth and empirical research of larger theoretical value.Gunnar Eliasson is author of Technology Generation or a National Prestige Project: The Swedish Aircraft Industry (in Swedish). His colleague, Nils Karlson is president of the City University of Stockholm. Among his writings are The Future of the Social Insurance System; Can the Present Problems of Mature Welfare States Be Solved; and States within States.