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The net outcome, according to McCarty, is likely to be "somewhat more support for macroeconomic intervention and broad forms of regulation, but continued skepticism about government ownership and microeconomic planning".
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Pereira (1989) shows the four forms of state intervention: macroeconomic regulation, limited by centralized planning; microeconomic regulation, with rules of protection to the health and safety of consumers; managerial microeconomics, regulation on a case-by-case basis; and nationalization or direct production, aiming the abolition of private property above the means of production.
Some of these issues are technical and are related to microeconomic theory and survey design considerations.
But there is already a discernible move leftward in some microeconomic policies: a new law controlling medicine prices is in force; plans to privatise big state firms have been dropped, and the government is intervening more in business, for example by demanding the faster transfer of shares to black investors.
But America, if Mr Obama has his way and the Bush tax cuts for high earners are eliminated, is heading for the worst possible outcome: raising taxes on income and capital but failing to trim the country's pension liabilities and rising health-care costs.In most rich countries the detailed plans for fiscal austerity contrast sharply with a lamentable lack of microeconomic ambition.
Even aside from doubts about Greek ability/willingness to carry through on promises, the fact is that nobody knows how much if any payoff microeconomic reforms will yield, and nobody in his right mind builds such payoffs into a fiscal plan.
Microeconomic failure is not macroeconomic failure.
The benefits of microeconomic reform were always oversold.
Now, let's reduce this theory to microeconomic reality.
But the "positive agenda" of microeconomic measures could speed up.
"It's at the macro- and microeconomic levels".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com