The Economics of Politics

Introduction to public choice theory

People should be treated as rational utility-maximisers in all their behaviour. This central insight leads to the conclusion that institutions must be designed so that individual behaviour will further the interests of the group, small or large, local or national.

The economic theory of politics represents a rediscovery and elaboration of a part of the conventional wisdom of the 18th and 19th centuries, notably that which informed classical political economy.

 

IEA Readings 18