PUBLIC CHOICE THEORY Meaning and
Definition
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Public choice theory is an economic and political theory that seeks to apply the principles of economics to the study of politics and government decision-making processes. It is based on the idea that individuals, including politicians and bureaucrats, are driven by self-interest and will make decisions that maximize their own welfare. Public choice theory assumes that individuals are rational actors who make decisions based on costs and benefits, and that these decisions are influenced by the institutional framework within which they operate.
In public choice theory, government actions are seen as the result of the interaction between different interest groups and individuals seeking to achieve their own objectives. It argues that government actors may not necessarily act in the best interest of the public, but rather in the interest of their own constituents or themselves. This theory suggests that political behavior can be understood through the lens of economic decision-making, taking into account factors such as incentives, competition, and rent-seeking.
Public choice theory has been used to analyze various aspects of government decision-making, such as the formation of public policy, the provision of public goods, and the behavior of elected officials. It emphasizes the importance of understanding the incentives and constraints faced by political actors in order to make accurate predictions about their behavior. Overall, public choice theory provides a framework for understanding the economic and political forces that shape government actions and policy outcomes.
