Dirigism in the “Neoclassical State” and Beneficence in the “Smithian State”

This paper is concerned with collective benefits arisen from operation of a market-based economy, contrasting traditional Neoclassical explanation with Adam Smith approach in The Wealth of Nations. Its aim is to examine, in both thoughts, the explanatory limits and the meaning of why a beneficent social outcome emerged from a market-based economy.

KEYWORDS:
Market; Adam Smith; neoclassical economics