Prior to Public Choice:

 

Public Choice Economists Recognize (regarding democratic policy):

    1.  Efficiency consideratins are often secondary

    2.  There are bureaucracy considerations
 

Government as a tool:
 

Focus of Attention by Public Choice Economists:

    1.  Legislative rules

    2.  Constitutional rules

    3.  Bureaucrats
 

Public Choice and Related Fields:  Some History of Economic Thought

Early Political Economy:

    Adam Smith (1776):
 
 
 

            The "right" institutions will lead to prosperity.
 

    Marx (mid-19th century):
 
 
 
 

    Neoclassical reaction to Marx:
 
 
 
 

    Emergence of Professional Economics

    Professional Economists:
 
 
 

    Marxist Followers:
 
 
 

A couple of examples of the Benevolent Despot Model View

    Market Failure:
 
 
 

    Macroeconomics:
 
 
 

The Emergence of Public Choice

    Collective decision-making process:

            Questions:
 
 
 
 

    Bureaucracy:

            Quesitons:
 
 

 
    Rent Seeking:

            Questions:
 
 

Political Science

    Behaviorism:
 

    Understanding:
 

Ethics in Political Conduct
 
 
 
 
 
 
 
 

Democracy Defined

    Government:
 

    Two fundamental characteristics of democracy:

        1.  Representation:
 

        2.  Rule of law:
 
 
 

    Inefficiency of Democracy (Preview)

        1.  Rational ignorance

        2.  Personal gain over collective gain (individual voters)

        3.  Personal gain over collective gain (elected officials)

        4.  District voters interests over all others by politicians
            (logrolling)

        5.  Interest groups

        6.  Bureaucrat's incentives (utility function)

        7.  Rent seeking

        8.  Resistance to privatization
 

    Some of these also exist in a dictatorship, like bureaucracy and rent-seeking.  Others are unique to democracy.
 
 

Some Methodology Issues:

    Welfare economics:
 

    Pareto-optimality (efficiency):
 

    Efficiency as a means, not an end:
 

    Efficiency must come down to ethics: