Abstract:

From the perspective of economic thought on State interventionism, it is important to note that State aid may be justified primarily on the grounds of social welfare if the free market mechanism does not produce satisfactory results. In such a case, the judicious implementation of State intervention can facilitate the optimisation of production factor allocation, mitigate market inefficiencies, and enable the attainment of objectives that are aligned with the collective interest. The objective of this article is to present the evolution of perspectives within economic theory on the rationale for State intervention in market mechanisms in instances of market failures.