ABSTRACT
With the coming of industrialization and the growth of cities, in the nineteenth century the state in all industrialized countries began to take some responsibility for education and public health. Similarly, a minimum level of public health is also seen as needed and public expenditures to control or eradicate disease, to improve sanitation become a part of the public sector. Government regulation of private enterprises is important to correct, to control, or to avoid what would otherwise be regarded as undesirable results of the market. Environmental regulations are used for social ends and to override private profit considerations that allow pollution. Both Public Service and Public Choice theories claim the ability to explain everything in government on the basis of a fundamental assumption that human behavior in government is driven by only a single motive. The public sector will continue to be the most important in the economy.
