DISCUSSION ABOUT THE ROLE OF STATE IN
ECONOMY: THE STATE AS ECONOMIC ENTITY
1. Market and state as mechanisms of co-ordination and
optimization of economic activity in the macroeconomic scale
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Institutional dichotomy: perfect market versus perfect state
Paradigm of market versus paradigm of state
Institutional dichotomy: imperfect state versus imperfect state
Interdependence of market failures and state failures
2. Nature of economic function of the state from the perspective of
market paradigm
 perfect competition as the mechanism leading to social welfare
maximization (Pareto optimum)
 Nature of market failures and their types
 Market failures as the reason for public regulation in market
economy
3. Public regulation from the point of view of market paradigm
 Broad and narrow definition of public regulation
 Public regulation and macroeconomic stabilization.
 Regulation of "real economy" versus regulation of financial
markets (financial flows) - financial regulation in the light of
globalization of financial markets
 Public regulation and social regulation
 Main instruments (tools) of public regulation (with respect to "real
economy")
 Normative and economic approach towards the public regulation
4. Economic function of the state in the approach of state
paradigm
 Point of reference: rejection of perfect market model and the view
about its unreliability as the mechanism of social welfare
maximization
 Diversification of reasons for and the scope to which the state
should assist (permanently or temporarily) the market mechanism
(Keynesian economics, Marxist economics, institutional
economics, various streams in economics thought in developing
countries)
 Role of the state in the ordoliberalism
5. Imperfect market versus imperfect state
 sources of failures of the state as the coordinative and optimization
mechanism
 interdependence of state failures and market failures
 State as a quasi market and the critique of optimization functions of
the state (dispute about the economic rationality under socialism
and the critique of socialist command-and -control economic
system within the neoclassical comparative economic studies)
6. Four levels of state's influence upon the economy
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public regulation
macroeconomic stabilization
microeconomic and institutional regulation
structural and growth policy, and its components in the approach of
market paradigm and state paradigm
 controversies about distributive functions of the state (with special
regard to current financial and economic crisis)
7. Economic
functions of the state under conditions of
globalization and emergence of the so called New Economy
7.1. Changing significance of business cycles related and structural
factors in the contemporary economic development
 Transnational corporations
 Changing character of capital markets under the influence of
modern information and communication technologies
 Globalization of financial markets and its increasingly
autonomous character with respect to real economy (production
and distribution of goods and services)
 Regional economic integration
7.2. The need for looking for and defining economic functions of the
state in heterodox economic streams
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Theory of Sustainable Development
New Economic History
Complexity economics
Evolutionary economics
Ordoliberalism