Knowledge (XXG)

Market intervention

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Conventionally, taxation is used as a form of revenue generation. However, it has been observed as long ago as the 14th century that taxation can influence trade and suppress economic activity. In practice, this is sometimes seen as a desirable outcome, and taxes are levied with the intention of
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A significant but often overlooked form of market intervention is the way that social and institutional norms, conventions, or rules can impact the function of markets. Different methods of "tâtonnement" (finding equilibrium) lead to different outcomes as these methods carry different
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While theoretically possible, quantity floors are rarer in practice. Such an intervention ensures that the market quantity does not fall below a certain level. Among other methods, this could be achieved by purchasing the marketed product, such as the case of a
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Another possible form of market intervention is a quantity ceiling. This essentially ensures that only a certain quantity of a good or service is produced and traded on a market. An example of such an intervention includes
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In contrast to a price floor, a price ceiling establishes a maximum price at which a transactions can occur in a market. A serious issue for price floors as well, but especially for price ceilings, is the emergence of
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Price floors impose a minimum price at which a transaction may occur within a market. These can be enforced by the government, as well as by non-governmental groups that are capable of wielding market power.
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pay (usually tax) money to people or organizations in financial difficulty; bail-ins transfer organizations from the ownership of their former shareholders to that of their creditors, cancelling the debt.
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require people or institutions to pay a one-time taxlike payment, to the government or some institution the government wishes to support; often paid only if above a certain level of wealth
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to suggest that taxes and subsidies should be used to internalise costs that are not fully captured by existing market structures. In his honour, these have been named
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occurs when the government buys government bonds, raising their price and lowering the return per unit price to people and institutions buying government bonds.
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action, but also by philanthropic and political-action groups. Market interventions can be done for a number of reasons, including as an attempt to correct
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or credits, whereby some market participants are able to offset their activity by paying other participants to reduce their own quantity.
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This article is about interventions in markets and market economies. For an alternative to markets as an allocative mechanism, see
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that ensures the utilisation of labour. It can also take the form of a legally binding level of producer output, also known as a
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Economic interventions can be aimed at a variety of political or economic objectives, including but not limited to promoting
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and market/government incentives pay money to produce some desired change in recipients
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is government support to individuals, in cash or in kind, often directed at basic needs
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grants a legal monopoly a creative work in order to encourage their production.
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Mukherji, Badal; Pattanaik, Prasanta K.; Sundrum, R.M. (April–June 1980).
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Krugman, Paul. "Cycles of conventional wisdom on economic development."
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are when banks are required to give one-off payments to governments
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An demonstration of a binding price floor, leading to excess supply
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OPTIMAL RESOURCE ALLOCATION AND SOME TECHNIQUES OF OPTIMIZATION
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restrict imports and exports by method other than direct taxes
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aim to increase competition and prevent monopoly and oligopoly
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transfers a privately held thing into government ownership
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is a policy or measure that modifies or interferes with a
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transfers a government-held thing into private ownership
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are legal monopolies granted on practical inventions
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(2000-02-10). 1992:and further by English economist 1725:Business and economics portal 2751:Singh, Sukudhew (1 March 2023). 2043: 2007: 1934:stymieing or limiting a market. 1771:, typically done in the form of 1718: 872: 860: 45: 2122:create a price floor on labour. 2054:needs additional citations for 147:Concepts, theory and techniques 16:Modification of market activity 2575:Tirole, Jean (February 2012). 2224:are also market interventions. 2097:Market interventions include: 1: 2433:10.15238/tujise.2015.2.2.1-19 2000:Types of market interventions 1957:Property Rights and Contracts 1779:, or more broadly to promote 1620:Commons-based peer production 1340:Socialism of the 21st century 2723:10.1016/j.labeco.2003.09.003 2146:Non-tariff barriers to trade 1783:or protect the interests of 2767:International Monetary Fund 2893: 2373:10.1007/s41775-019-00074-1 2213: 1960: 1922: 1919:Taxation and subsidisation 1894:Quantity ceiling and floor 1862: 18: 2775:10.5089/9798400233708.022 2758:Finance & Development 2631:10.1080/01442870701848053 1114:Socialist-oriented market 2613:Warhurst, Chris (2008). 2581:American Economic Review 2521:"The Nature of the Firm" 2467:The Economics of Welfare 135:JEL classification codes 2625:(1). Routledge: 71–86. 2235:Chinese economic reform 2134:foreign exchange market 1859:Price floor and ceiling 1832:state owned enterprises 321:Industrial organization 178:Computational economics 2349:Indian Economic Review 2290:Social interventionism 1878: 1802:, raising or reducing 173:Experimental economics 2858:71.4 (1995): 717-732. 2856:International Affairs 2255:Development economics 2130:currency intervention 1876: 2593:10.1257/aer.102.1.29 2505:. Purdue University. 2280:Regulatory economics 2063:improve this article 2021:adding missing items 1941:used the concept of 1650:Newly industrialized 1393:Collective ownership 1254:Vertical archipelago 400:Social choice theory 2365:University of Delhi 2265:Indicative planning 2182:Cross subsidization 2164:Quantitative easing 1765:market intervention 1635:Inclusive Democracy 867:Business portal 188:Operations research 168:National accounting 2872:Market (economics) 2482:on 26 January 2017 2410:Islahi, Abdul Azim 2019:; you can help by 1879: 1573:Material balancing 1055:Buddhist economics 198:Industrial complex 193:Middle income trap 2519:(November 1937). 2095: 2094: 2087: 2037: 2036: 1986:transaction costs 1808:income inequality 1761: 1760: 1271:By regional model 1065:Sabbath economics 915: 914: 2884: 2840: 2839: 2837: 2835: 2800: 2794: 2793: 2791: 2789: 2748: 2742: 2741: 2739: 2737: 2706:Labour Economics 2689: 2683: 2682: 2680: 2678: 2648: 2642: 2641: 2639: 2637: 2610: 2604: 2603: 2601: 2599: 2572: 2566: 2565: 2563: 2561: 2517:Coase, Ronald H. 2513: 2507: 2506: 2498: 2492: 2491: 2489: 2487: 2478:. 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489: 486: 484: 481: 479: 476: 474: 471: 469: 468:de Mandeville 466: 465: 460: 454: 453: 446: 443: 441: 438: 436: 433: 431: 428: 426: 423: 421: 418: 416: 413: 411: 408: 406: 403: 401: 397: 396:Public choice 394: 392: 389: 387: 384: 382: 379: 377: 374: 372: 371:Participation 369: 367: 364: 362: 359: 357: 354: 352: 349: 347: 344: 342: 339: 337: 334: 332: 331:Institutional 329: 327: 324: 322: 319: 317: 314: 312: 309: 307: 304: 302: 299: 297: 294: 292: 289: 287: 284: 282: 281:Expeditionary 279: 277: 274: 272: 271:Environmental 269: 267: 264: 262: 259: 257: 254: 252: 249: 247: 244: 242: 239: 237: 234: 232: 229: 227: 224: 222: 219: 217: 214: 213: 207: 206: 199: 196: 194: 191: 189: 186: 184: 181: 179: 176: 174: 171: 169: 166: 164: 161: 159: 156: 154: 151: 150: 144: 143: 136: 133: 131: 128: 126: 123: 121: 118: 116: 113: 111: 107: 104: 102: 101:International 99: 97: 94: 92: 89: 87: 84: 83: 80: 77:Branches and 74: 73: 68: 65: 63: 60: 58: 55: 54: 53: 52: 48: 44: 43: 40: 36: 32: 28: 27: 22: 2855: 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246:Development 241:Demographic 183:Game theory 125:Methodology 2866:Categories 2367:: 99–118. 2296:References 2214:See also: 2170:Regulation 2128:, such as 2017:incomplete 1982:menu costs 1961:See also: 1937:Economist 1923:See also: 1863:See also: 1798:, raising 1796:employment 1700:Transition 1660:Plantation 1568:Indicative 1430:Transition 1280:East Asian 1051:Religious 1027:Democratic 1000:Neoliberal 985:Democratic 975:Capitalist 943:Capitalism 832:Economists 703:Schumacher 608:Schumpeter 578:von Wieser 498:von Thünen 459:economists 435:Statistics 430:Solidarity 351:Managerial 316:Humanistic 311:Historical 256:Ecological 221:Behavioral 115:Mainstream 2783:0015-1947 2731:0927-5371 2526:Economica 2476:Macmillan 2441:2148-3809 2381:0019-4670 2260:Dirigisme 2176:Subsidies 2114:Copyright 2075:July 2024 1836:subsidies 1665:Plutonomy 1546:Regulated 1375:Voluntary 1301:European 1154:Feudalism 1099:Mutualist 1089:Communist 1079:Socialist 1060:Christian 980:Corporate 953:Communism 948:Socialism 748:Greenspan 713:Samuelson 693:Galbraith 663:Tinbergen 603:von Mises 598:Heckscher 558:Edgeworth 376:Personnel 336:Knowledge 301:Happiness 291:Financial 261:Education 236:Democracy 130:Political 96:Heterodox 39:Economics 2834:29 March 2788:25 April 2736:25 April 2715:Elsevier 2677:25 April 2636:29 March 2598:29 March 2560:27 April 2486:25 April 2464:(1932). 2446:25 April 2394:27 April 2389:41343884 2328:29 March 2229:See also 2186:feebates 2102:Bailouts 2028:May 2020 1974:rigidity 1842:such as 1553:Planning 1204:Informal 1189:Dirigist 1042:Georgist 1037:Feminist 922:a series 920:Part of 841:journals 827:Glossary 778:Stiglitz 743:Rothbard 723:Buchanan 708:Friedman 698:Koopmans 688:Leontief 668:Robinson 553:Marshall 457:Notable 405:Regional 381:Planning 356:Monetary 286:Feminist 231:Cultural 226:Business 31:a series 29:Part of 2829:1238882 2699:(ed.). 2672:1227762 2555:2626876 2194:Welfare 2152:Patents 2132:on the 1929:subsidy 1820:profits 1595:Sharing 1558:In kind 1506:Marxist 1398:Commons 1365:Private 1354:Sectors 1325:Rhenish 1295:Keralan 1285:Chinese 1259:Virtual 1239:Sharing 1229:Planned 1219:Natural 1184:Digital 1072:Islamic 1032:Fascist 1020:Welfare 847:Schools 839: ( 798:Piketty 793:Krugman 658:Kuznets 648:Kalecki 623:Polanyi 513:Cournot 508:Bastiat 493:Ricardo 483:Malthus 473:Quesnay 445:Welfare 415:Service 86:Applied 62:Outline 57:History 2827:  2781:  2769:: 73. 2729:  2670:  2553:  2535:London 2533:(16). 2472:London 2439:  2387:  2379:  1980:, and 1978:search 1804:prices 1769:market 1655:Palace 1531:Market 1526:Barter 1370:Public 1330:Soviet 1315:Nordic 1310:German 1276:Asian 1209:Market 783:Thaler 763:Ostrom 758:Becker 753:Sowell 733:Baumol 638:Myrdal 633:Sraffa 628:Frisch 618:Knight 613:Keynes 588:Fisher 583:Veblen 568:Pareto 548:Menger 543:George 538:Jevons 533:Walras 523:Gossen 391:Public 386:Policy 341:Labour 306:Health 163:Market 2825:JSTOR 2765:(1). 2713:(2). 2551:JSTOR 2417:(PDF) 2385:JSTOR 2361:India 2357:Delhi 2355:(2). 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Index

planned economy
a series
Economics

History
Outline
Index
classifications
Applied
Econometrics
Heterodox
International
Micro
Macro
Mainstream
Mathematical
Methodology
Political
JEL classification codes
Economic systems
Economic growth
Market
National accounting
Experimental economics
Computational economics
Game theory
Operations research
Middle income trap
Industrial complex
Agricultural

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