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Imperfect Public Choice

Author

Listed:
  • Andre de Palma

    (Simon Fraser University)

  • Gordon M. Myers

    (Simon Fraser University)

  • Yorgos Y Papageorgiou

Abstract

We model public choice in a number of cases where a govern- ment, since it cannot design an optimal policy as a whole, resorts to a sequen- tial, myopic approach; and which is not free of error. We use this framework to explore governmental budgeting and welfare economics. We develop various examples that clarify how the introduction of such subjective and imperfect characteristics a¤ect predictions concerning public choice. We then provide a model which integrates bounds errors and systematic (astray) errors. We ar- gue that bounds errors and astray errors are inextricably intertwined— some level of bounded rationality is required for astray errors to emerge. We further extend this model to explore information lobbying and other types of external pressure; and we show that choosing leaders with high ability to choose, or with Madison’s wisdom to discern, is important, especially in the case of policy decisions concerning dangerous products (e.g. assault ri‡es) and environments (e.g. Covid 19).

Suggested Citation

  • Andre de Palma & Gordon M. Myers & Yorgos Y Papageorgiou, 2020. "Imperfect Public Choice," Discussion Papers dp21-01, Department of Economics, Simon Fraser University.
    • Handle: RePEc:sfu:sfudps:dp21-01
    as

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    Other versions of this item:

    • André de Palma & Gordon M. Myers & Yorgos Y. Papageorgiou, 2020. "Imperfect Public Choice," THEMA Working Papers 2020-13, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

    References listed on IDEAS

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    More about this item

    Keywords

    Behavioural Economics; Public Choice;

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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