Comparative Politics and Public Finance
The postwar neoclassical theory of normative public finance has been written from a Pigovian perspective. It addresses questions about optimal taxation and allocation of public goods from the perspective of a benevolent social planner. This field of research has produced many important principles and insights regarding what governments should do. It nevertheless suffers from an important weakness, which has been forcefully pointed out by the Public Choice school: it neglects that political representatives rationally follow their self-interest.
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- Fershtman, Chaim & Judd, Kenneth L & Kalai, Ehud, 1991.
"Observable Contracts: Strategic Delegation and Cooperation,"
International Economic Review,
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"Separation of Powers and Political Accountability,"
The Quarterly Journal of Economics,
MIT Press, vol. 112(4), pages 1163-1202, November.
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- V. V. Chari & Larry E. Jones & Ramon Marimon, 1997.
"The economics of split-ticket voting in representative democracies,"
582, Federal Reserve Bank of Minneapolis.
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- Persson, Torsten, 1998. "Economic Policy and Special Interest Politics," Economic Journal, Royal Economic Society, vol. 108(447), pages 310-27, March.
- Daniel Diermeier & Timothy J. Feddersen, 1996. "Disciplined Coalitions and Redistribution: The Effect of the Vote of Confidence Procedure on Legislative Bargaining," Discussion Papers 1171, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Alesina, Alberto & Rosenthal, Howard, 1996. "A Theory of Divided Government," Econometrica, Econometric Society, vol. 64(6), pages 1311-41, November.
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