The State and the Economy – Theoretical Aspects and Empirical Evidence for the EU

This paper aims to analyze the determinants of state intervention upon the social and economic life, and to grasp their implications in terms of public policy. The study starts with an over time update of the main theoretical contributions. Some indicators that quantify the extent of state intervention throughout public revenues are analyzed on the EU member countries’ sample. Empirical analysis is aimed to establish the relevance held by the main determinants of state intervention in budgetary revenues for the EU countries (1995-2007). Perspectives on state interference during the actual crisis are drawn from the significant determinants of the interference policy.