The role of the state in the economy

role of the state in the economy - an issue that is central both in practice and in theory.At the same time offered by some schools of thought fundamental approaches to this issue have significant differences.On the one hand, liberal economists hold positions minimalist role of the state in regulating the economy.And some scientific schools necessity of active state intervention in market processes.Find the optimal extent of government regulation is difficult.Therefore, the history shows that in some countries there were periods when dominated both the first and the second point of view.

role of the state in the economy is determined by considering it as a subject of management, ensuring the functioning of the organization of all the elements of a social and economic system.State acting as a public representative of a whole set of other rules of interaction of economic agents to the implementation of the control of their observance.

role of government in a market economy comes down to law enforcement priority enshrined in law.It finds its realization in the form of a system of sanctions that are applied in violation of the current legislation in the form of appropriate regulation.When considering the role of the state in another aspect, it is possible to see the display in the form of equitable business entity along with private firms as it is in the face of business they carried out the production of certain goods or services.

place and role of the state in the Russian economy from the perspective of practical application may be considered on the basis of its interaction with the market mechanism.State regulation of the economy is necessary in the event of a situation in which the result of market forces is not sufficiently effective from the perspective of society.In other words, state intervention in the economy is recognized only justified if the market does not provide the optimum use of resources by the public interest.These situations are called market failures, among which include:

- Adoption of legislation and control over their execution and enforcement of property rights with treaty obligations.

- The allocation of resources and the provision of public goods in the production process of these resources themselves.Public goods are characterized by certain properties.Firstly, the so-called non-competition in which the lack of competition among consumers for the use of these benefits is due to the increase in the number of consumers without compromising the utility available to each of them.Secondly, it neisklyuchaemost providing restricted access individual consumer or the whole group to the benefits because of the difficulties encountered.

role of the state in the economy depends not only on objective factors, but can be determined by some political processes, or public option.At the same time, in some countries, the liberal state influence on the economy can not be limited to compensation of market failures of the traditional kind.

It should be noted that the role of government in a mixed economy is characterized by inefficiency, not only part of the market mechanism.Some expansion of the regulatory functions of the state and the resources he controlled, above a certain limit, a negative impact on the economic situation.