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Economic Efficiency, Political Institutions and Policy Analysis

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Abstract

The authors focus on the implications for policy research and advice if they adopt either a strictly economic perspective or if they extend theoretical modeling to include political behavior and to account for the existence of political institutions. They examine the nature of policy analysis in models centering on a social planner, on expected vote maximization, and on majoritarian choices subject to possible instability of outcomes. Special attention is given to the treatment of project evaluation, budget size, tax structure and reform in the different perspectives, and to the meaning of efficiency in a context that includes political behavior and institutions. Copyright 1993 by WWZ and Helbing & Lichtenhahn Verlag AG

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Bibliographic Info

Paper provided by Carleton University, Department of Economics in its series Carleton Economic Papers with number 91-10.

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Length: 21 pages
Date of creation: 1991
Date of revision: 1993
Publication status: Published: – revised version in Kyklos, Vol. 46, No. 1 (1993), pp. 3–25
Handle: RePEc:car:carecp:91-10

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Keywords: public choice; institutions; policy analysis; project evaluation; transactive costs;

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Cited by:
  1. Wolfgang Weigel, 1999. "Ratgeber und Ratsuchende in der Wirtschaftspolitik," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 25(2), pages 201-216.
  2. Eggertsson, Thrainn, 1997. "The old theory of economic policy and the new institutionalism," World Development, Elsevier, vol. 25(8), pages 1187-1203, August.

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