Do elections lead to informed public decisions?

Democracies delegate substantial decision power to politicians. We analyse a model in which the electorate wants an office-motivated incumbent to design, examine and implement public policies. We show that voters can always encourage politicians to design projects. However, they cannot always induce politicians to examine projects. In fact, politicians who would examine policies without elections, say because of a concern about the public interest, may shy away from policy examination with elections.     

The public choice of educational choice

The very small literature explaining (i) how citizens have voted in two California voucher referenda, (ii) how legislators have voted on voucher bills in the State of Florida and the US Congress, and (iii) the variation across states in charter school provisions is summarized. New empirical evidence documenting the cross-state variation in the success of voucher referenda and voucher bills is examined. Voucher bill characteristics and state characteristics play important roles. Voucher bills have been passed only in the more conservative Republican states, and almost all of the successful voucher programs have been targeted at large, struggling school districts.     

Moral public choice

Public Choice should now integrate systematically considerations of ethics and justice for two kinds of reasons. First, moral principles can be implemented by self-centered individual who, however, care for others' judgments, and these others can thus have these principles implemented at no cost to themselves. Furthermore, direct moral motivations may be less negligible than it was assumed, and at any rate it may be time to focus on them. Second, the theory of justice has reached an integrated, rational maturity which makes it suitable for this purpose (whereas the “Social Choice” approach is plagued by serious problems of meaning).     

Behavioral economics and public choice: introduction to a special issue

We provide an introduction to a special issue on behavioral economics and public choice.

     

Happiness and public choice

Measuring individual welfare using data on reported subjective well-being has made great progress. It offers a new way of confronting public choice hypotheses with field data, e.g., with respect to partisan preferences or rents in the public bureaucracy. Insights from public choice also help to assess the role of happiness measures in public policy. We emphasize that maximizing aggregate happiness as a social welfare function neglects incentive problems and political institutions while citizens are reduced to metric stations. The goal of happiness research should be to improve the nature of the processes through which individuals can express their preferences.     

Procyclical government spending: a public choice analysis

Procyclical government spending occurs when government expenditures increase at a faster rate than income in an economic upturn but fall at a faster rate in a recession. Voracity effects occur when competition for increased spending proves more effective as national income increases. Public choice theory can be applied to describe the distribution of fiscal power across different tiers of government to shed insight into competition for intergovernmental transfers. Politicians have electoral incentives to press for intergovernmental transfers but they also have electoral incentives to signal their ability to manage the economy. With this mix of incentives, the prediction is that intergovernmental transfers will be procyclical and that sub-central government spending will be more procyclical than central government spending. Public choice analysis of pressure for increased public spending predicts a specific pattern of cyclical government spending. This pattern can be observed when analyzing government expenditures in 20 OECD countries between 1995 and 2006.     

Toward a public choice theory of monopoly regulation

This paper benefited from valuable comments when presented at the Sixth Annual Conference of the Rutgers University Advanced Workshop in Public Utility Economics and Regulation at Bolton Landing, New York in May 1987.