This document discusses different economic systems and the role of the state and market within modern economies. It covers early theories that categorized economies based on singular factors like production or allocation. More recent theories examine economies as complex systems and consider the extent of consumer freedom. The document also discusses factors that influence the size of government spending, like Wagner's Law of increasing public expenditures during industrialization and the Baumol effect of slower productivity growth in services. Political factors like interest groups, party competition, and fiscal illusions can also impact government size. Keynesian economics is discussed in the context of mass production and consumption as well as social coalitions.
7. Developed societies (market economies) The frequency distribution of preferences Benevolent Neutral , Self-interested Malevolent
8. Undeveloped societies (non-market economies) The frequency distribution of preferences Benevolent Neutral , Self-interested Malevolent
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13. The explanatory factors of the growth in state spending Factors Economic Wagner’s law (demand side) Baumol effect (supply side) Political The theory of bureaucracy Party competition Interest groups Voters and fiscal illusion Election and party systems Other factors Tax system The effect of the world market
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