Government intervention

The use of indirect taxation, subsidies, price controls, state provision and regulation, the extension of property rights and pollution permits to correct market failure.

Action that aims to correct market failures to improve social welfare, but which is not always justified and can lead to unintended consequences.

Policies such as progressive taxation and welfare transfers that play a critical role in modifying the distribution of income and wealth.

Action taken by the state to achieve macroeconomic and microeconomic objectives, such as improving equity or correcting market failure.

Action such as subsidies or direct provision, assessed using models to see whether it improves welfare or leads to government failure.

The state acting, as in the subjective belief that it should intervene when individuals lack information to make healthy choices.