The paper clarifies the “meso-economy” concept by defining it as comprising both the market mechanisms and administrative procedures through which policy decisions and market signals trickle down to the household level. Three main bodies of literature are reviewed: the policy-oriented literature in which the meso-economy was initially considered; the transaction cost approach analyzing market and policy failures, and the “micro-economy” level of agricultural household models. The paper develops a synthesis of macro-, meso- and micro-economic perspectives, which focuses on the roles played by three levels of filters intervening along the policy chain. Implications for policy and research are drawn.