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