This chapter focuses on allocation, distribution and stabilization, given these are the three classic tasks of the public sector. The concepts are explained and described one by one, followed by a discussion as to where and how they can work in the same or opposite directions. This may mean, to exemplify, that a better distribution of a society's scarce resources can be achieved by an intervention in allocation, while at the same time there might be a risk that this will contribute to an increased degree of inequality. The difficulty of fulfilling a number of related objectives at the same time thus becomes an illustration of the fact that a number of separate types of interventions are often needed if several economic objectives, as well as other societal aims are to be achieved. Examples of intervention are presented.
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