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Socioeconomic Decision-Making: Government

In: Behavioural Foundations of Economics

Author

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  • J. L. Baxter

    (Sheffield University Management School)

Abstract

Philosophers, political scientists and others have long argued about the reasons for the existence of government, and its appropriate role. Economists generally have concerned themselves solely with those aspects of government activity which seemed to impinge most directly on economic affairs, and for this reason have underestimated people’s need for government. To put the matter more precisely, I shall be arguing in the present chapter that the satisfaction of certain human needs can best be met (perhaps can only be met) with the aid of a benevolent government. Appreciation of this need for government helps provide a better explanation of the functions which governments have acquired in the more industrialised economies, and the economic consequences which have ensued. In order to place my approach in context, I will start with a brief look at the principal approaches to government.

Suggested Citation

  • J. L. Baxter, 1993. "Socioeconomic Decision-Making: Government," Palgrave Macmillan Books, in: Behavioural Foundations of Economics, chapter 11, pages 185-209, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-22627-6_11
    DOI: 10.1007/978-1-349-22627-6_11
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