The Public Choice Revolution
8 Pages Posted: 22 Oct 2004
Public Choice analysis begins with a simple question: How are collective decisions made? The answer, of course, is that the decisions are made by policymakers - politicians and bureaucrats - and by voters. The starting idea of public choice theory is disarmingly simple: Individuals, when acting as voters, politicians, or bureaucrats, continue to be self-interested and try to maximize their utility. In a narrow sense, public choice analysis is concerned with "state failures."
Keywords: Public choice, pareto-optimal, median-voter theorem, voting, elections, democracy, decision-making
JEL Classification: D72, H3
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