The threat of the entrepreneurial state
摘要
The idea that governments should act entrepreneurially has gained a following among academics and policymakers. An examination of what it means to be entrepreneurial reveals that the institutional structure of governments prevents them from acting entrepreneurially. Attempts to make the state more entrepreneurial would exacerbate pathologies in government decision-making that have been identified in the public choice literature. The entrepreneurial state would enhance the power of budget-maximizing government agencies and would create rents to encourage rent-seeking.