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On the Public Choice Critique of Welfare Economics

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  • Besley, Timothy
  • Coate, Stephen

Abstract

The public choice literature urges the welfare economist to anticipate how political forces will shape the levels of new policy instruments when government intervenes in a new way. This paper argues that the welfare economist should also recognize that new interventions may impact the politically determined levels of existing policy instruments. It shows how the introduction of a new instrument can lead to shifts in political coalitions or compromises in existing areas of conflict that can produce significant changes in existing policies. Such spillover effects can provide new arguments for introducing particular policy interventions. Even a policy instrument without an obvious welfare economic rationale can change voter coalitions and shift the policy equilibrium in a welfare improving direction. Copyright 2003 by Kluwer Academic Publishers

Suggested Citation

  • Besley, Timothy & Coate, Stephen, 2003. "On the Public Choice Critique of Welfare Economics," Public Choice, Springer, vol. 114(3-4), pages 253-273, March.
  • Handle: RePEc:kap:pubcho:v:114:y:2003:i:3-4:p:253-73
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    Cited by:

    1. Ho, Shirley J., 2007. "Impacts of interest groups: Endogenous interaction and lobbying limits," Economic Modelling, Elsevier, vol. 24(3), pages 506-522, May.
    2. Livani, Talajeh & Graham, Carol, 2019. "Do social protection programs improve life satisfaction? Evidence from Iraq," World Development Perspectives, Elsevier, vol. 16(C).
    3. Goulão, Catarina, 2014. "Voluntary Public Health Insurance," TSE Working Papers 14-488, Toulouse School of Economics (TSE).
    4. Catarina Goulão, 2015. "Voluntary public health insurance," Public Choice, Springer, vol. 162(1), pages 135-157, January.
    5. J. Peter Clinch & Eoin O'Neill, 2010. "Assessing the Relative Merits of Development Charges and Transferable Development Rights in an Uncertain World," Urban Studies, Urban Studies Journal Limited, vol. 47(4), pages 891-911, April.
    6. Salvatore Barbaro & Jens Suedekum, 2009. "Voting on income tax exemptions," Public Choice, Springer, vol. 138(1), pages 239-253, January.
    7. Kanbur, Ravi, 2004. "Growth, Inequality And Poverty: Some Hard Questions," Working Papers 127133, Cornell University, Department of Applied Economics and Management.
    8. Raul V. Fabella & Vigile Marie Fabella, 2015. "Re-Thinking Market Failure in the Light of the Imperfect State," UP School of Economics Discussion Papers 201506, University of the Philippines School of Economics.
    9. Lahiri, Radhika & Ratnasiri, Shyama, 2013. "Costly technology adoption, redistribution and growth," Economic Modelling, Elsevier, vol. 33(C), pages 440-449.

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