Is the pendulum swinging back? Policy and politics in the return of big government
| RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2009 - 1
In the era of «small government», policy was considered the right way to conceive the role of the state in society and in the economy. This was intended as a perspective able to reduce the room for politics, considered a (dangerous) clash of power and party interests, and ideology. Given the current return of «big government», how does one deal with the unavoidable return of politics? In this paper we construct a model showing that politics should be considered purposely in a rational setting, to support effective policy, insofar as the state and its activities need substantial consensus.
Key words: Politics, policy-making, local public goods, redistributive policies, elections.
JEL Classification: D72, H40, H11.