When distinguishing government as actor or referee, when the government passes legislation that prohibits discrimination in the workplace, it serves as an economic referee.
Referees play an important role in the academic peer review process. They help to ensure that published papers meet the high quality standards that the Economic Journal strives for, and they provide authors with valuable feedback to help them improve their work. When it comes to determining whether the government is an actor or a referee in the economy, the government acts as an actor rather than a referee when it: increases education spending.
The government acts as a referee in the economy by establishing channels for making decisions on various legal issues. For example, the government has courts that assist in resolving various legal issues in the economy. The rules for legal avenues are primarily government regulations and policies.
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