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Allocation, distribution and stabilization

In: The Role of the Public Sector

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Abstract

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.

Suggested Citation

  • ., 2022. "Allocation, distribution and stabilization," Chapters, in: The Role of the Public Sector, chapter 2, pages 13-22, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:21683_2
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