Political Economy: Government Decisions & Public Policy
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Understanding Political Economy
Political economy applies economic principles to the analysis of political decision-making.
Public Goods & Direct Democracy
Economists have studied several methods for choosing levels of public goods in a direct democracy.
Lindahl Pricing & Preference Revelation
Lindahl pricing results in a unanimous decision to provide an efficient quantity of public goods, but relies on honest revelation of preferences.
Majority Voting Challenges
Majority voting may lead to inconsistent decisions regarding public goods if some people's preferences are not single-peaked.
Logrolling: Trading Votes
Logrolling allows voters to express the intensity of their preferences by trading votes. However, minority gains may come at the expense... Continue reading "Political Economy: Government Decisions & Public Policy" »