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Fiscal Policy and Government Intervention

In: Intertemporal and Strategic Modelling in Economics

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  • Orlando Gomes

    (Lisbon Polytechnic Institute (ISCAL—IPL) and CEFAGE research center (Évora University—ISCAL))

Abstract

The government is a central economic agent in modern societies, playing a series of fundamental roles: to the government is assigned the provision of public goods (goods that are simultaneously nonrival and nonexcludable) and the promotion of positive externalities (as those emerging from education or health). The government is also expected to correct or adjust market outcomes, in favor of those less favored (e.g., through transfers to the unemployed or the disabled). Finally, the government is responsible by fiscal policy, i.e., the management of public revenues and expenditures with the goal of fulfilling macro policy objectives (e.g., lowering unemployment or stabilizing prices). In this chapter, various issues pertaining to the role of the government are addressed, mostly those associated with the dynamics of public finance.

Suggested Citation

  • Orlando Gomes, 2022. "Fiscal Policy and Government Intervention," Lecture Notes in Economics and Mathematical Systems, in: Intertemporal and Strategic Modelling in Economics, chapter 0, pages 131-153, Springer.
    • Handle: RePEc:spr:lnechp:978-3-031-09600-6_6
    DOI: 10.1007/978-3-031-09600-6_6
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