Econb493 Political Economy
and the Media
Notes (1)
Theories of Public Policy
1. Rationalism or the Benevolent Despot Model
-
Government chooses policies resulting in maximum
gains to society that exceed costs by greatest amount
-
Unrealistic assumptions
2. Elite Theory
-
Policy is the product of the interaction of
interest groups
-
Policy changes when group interests change or
their relative power changes
-
No theory about the reason certain groups exist,
etc.
5. Public Choice Theory
-
Application of economic logic to politics
-
Individuals as consumers of government and services
-
Rational individuals but irrational, (sub-optimal)
outcomes
-
Institutions and groups are studied but the
individual decision-maker is still the driving force in the theory.