Production | Extraction | ||||
---|---|---|---|---|---|
Small size | Solve market failure Supply public goods National defense Legal order Property rights Stability Public Health | Promoting social equity and protecting the poor Antipoverty Eliminating diseases | Taxation; Strict budget constraint and supervision | ||
Middle size | Solving externality: Elementary Education Environment protection | Control monopoly: Law of public service Policy of antimonopoly | Information regulation: Insurance Consumer protection | Providing social insurance Unemployment insurance Unconditional grants | Unfixed income; Extra-budgetary income ; non-budgetary income ; “Implicit Tax” |
Large size | Coordinating private activities Promoting market Multiple regulations | Redistribution: Asset redistribution | Comprehensive extraction Interests Human capital State as a super company |