Public choice theory..

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Presentation transcript:

Public choice theory.

Adam Smith: “ The desire of bettering our conditions” begins with birth and ends with death. Striving to maximize benefits with minimum costs. Rational choice: behavior is rational where marginal benefit is equal to marginal cost.

Application of rational choice to political market. Self interest determines how decisions are made. From a public administration perspective bureaucrats will make a decision that minimize risks and maximize rewards for their departments.

Niskanen , Downs , Tullock : talk about administrative egoism Niskanen , Downs , Tullock : talk about administrative egoism. Bureaucrats as self seekers who do more harm than good to public. Bureaucratic monopoly: bureaucratic growth brings more and more rewards for the officials.

How to control bureaucracy? control by parliament and executive. More competition in the delivery of public services. Privatization to reduce wastage.