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Economic Efficiency, Political Institutions and Policy Analysis

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Abstract

The authors focus on the implications for policy research and advice if they adopt either a strictly economic perspective or if they extend theoretical modeling to include political behavior and to account for the existence of political institutions. They examine the nature of policy analysis in models centering on a social planner, on expected vote maximization, and on majoritarian choices subject to possible instability of outcomes. Special attention is given to the treatment of project evaluation, budget size, tax structure and reform in the different perspectives, and to the meaning of efficiency in a context that includes political behavior and institutions. Copyright 1993 by WWZ and Helbing & Lichtenhahn Verlag AG
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Suggested Citation

  • Walter Hettich & Stanely Winer, 1991. "Economic Efficiency, Political Institutions and Policy Analysis," Carleton Economic Papers 91-10, Carleton University, Department of Economics, revised 1993.
    • Handle: RePEc:car:carecp:91-10
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    Cited by:

    1. Afontsev Serguey, 2000. "Political Economy of Tariff Protection in Russia: an Empirical Study," EERC Working Paper Series 99-16e, EERC Research Network, Russia and CIS.
    2. Onrubia-Fernández, Jorge & Fuentes, Antonio Jesús, 2017. "How costly are public sector inefficiencies? A theoretical framework for rationalising fiscal consolidations," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 11, pages 1-19.
    3. Eggertsson, Thrainn, 1997. "The old theory of economic policy and the new institutionalism," World Development, Elsevier, vol. 25(8), pages 1187-1203, August.

    More about this item

    Keywords

    public choice; institutions; policy analysis; project evaluation; transactive costs;
    All these keywords.

    JEL classification:

    • H00 - Public Economics - - General - - - General

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