公共政策的经济分析(英文)Chap06-Political-Economy.pptVIP

Chapter6–PoliticalEconomy1

PoliticalEconomyDefinedPoliticalEconomyistheapplicationofeconomicprinciplestotheanalysisofpoliticaldecisionmaking.Self-interest–inthemarketplace,thisoftenleadstoefficiency;differentimplicationsin“politicalmarket.”Maximization–onegoalmaybetomaximizesocialwelfare.2

DirectDemocracySeveralkindsofvotingprocedures:UnanimityrulesMajorityvotingrulesLogrollingProblemswithalloftheserules:Arrow’sImpossibilityTheorem3

DirectDemocracy:

UnanimityrulesUnanimityrules:Allpartiesmustagreeforapolicytobeimplemented.Example:Inprinciple,societycouldagreethatapublicgoodshouldbeprovidedratherthannotbeingprovided.Lindahlpricesdesignedtoelicitunanimousagreementforprovisionofpublicgood.4

Figure6.16

DirectDemocracy:

ExampleofLindahl’sprocedureFigure6.1showstherelationshipbetweeneachperson’staxsharequantityoffireworksdemanded.Eachpersondemandsmorefireworksastheshareofcostspaidfalls.Sharesadduptoone:SA+SE=1Lindahlprices:Eachpersonfacesa“personalizedprice”perunitofthepublicgood,whichdependsonthetaxshare.7

DirectDemocracy:

ExampleofLindahl’sprocedureEquilibrium:setofLindahlpricessuchthateachpersonvotesforthesamequantityofthepublicgood.InFigure6.1,thisoccursatquantityr*,andeachperson’sshareismeasuredonthex-axis.8

DirectDemocracy:

FeasibilityofLindahl’sprocedureProblems:AssumespeoplevotesincerelyStrategicbehavior(e.g.,misrepresentingone’spreferences)maypreventLindahlequilibriumFindingtaxsharesmaytakealotoftime.Imaginemanyparties,notjusttwo.10

DirectDemocracy:

MajorityVotingrulesMajorityVotingrules:onemorethanhalfofthevotesmustfavorameasuretogainapproval.Althoughtherulesarefamiliar,potentialproblemswiththem.11

Table6.113

DirectDemocracy:

MajorityVotingruleexampleNowconsiderthepreferencesareshowninTable6.215

Table6.21