Randall G. Holcombe - An economic analysis of democracy
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Democratic decisions determine the allocation of resources through the public sector. Holcombe uses the median voter model as a base, but goes on to develop a more general multidimensional model of democratic decision making that incorporates many theoretical developments of the past decade. He focuses upon the representative body of government and the fact that representatives can profit more from passing legislation to benefit special interests than from passing legislation in the general public interest. Using these insights Holcombe develops a model that describes the allocative effects of making economic decisions by majority rule. The model describes a stable equilibrium outcome for majority rule decisions made in a multidimensional setting; it is a logical extension of the framework established in his well-received Public Finance and the Political Process.
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An Economic Analysis of Democracy Political and Social Economy
author
:
Holcombe, Randall G.
publisher
:
Southern Illinois University Press
isbn10 | asin
:
0809312115
print isbn13
:
9780809312115
ebook isbn13
:
9780585180731
language
:
English
subject
Public administration--Decision making, Finance, Public--Decision making, Voting, Democracy.
publication date
:
1985
lcc
:
JF1525.D4H65 1985eb
ddc
:
330.12
subject
:
Public administration--Decision making, Finance, Public--Decision making, Voting, Democracy.
Page ii
Political and Social Economy Edited by C. Addison Hickman and Michael P. Shields
Other Books in This Series:
Conglomerates and the Evolution of Capitalism Charles R. Spruill
Economic Thought and Social Change J. Ron Stanfield
Origins of Economic Thought and Justice Joseph J. Spengler
The Political Economy of the Urban Ghetto Daniel R. Fusfeld Timothy Bates
Public Finance and the Political Process Randall G. Holcombe
Toward Social Economy Howard R. Bowen
Page iii
An Economic Analysis of Democracy
Randall G. Holcombe
SOUTHERN ILLINOIS UNIVERSITY PRESS Carbondale and Edwardsville
Page iv
To Mom and Ed
Copyright 1985 by the Board of Trustees, Southern Illinois University All rights reserved Printed in the United States of America Edited by Teresa White Designed by Loretta Vincent Production supervised by Kathleen Giencke
88 87 86 85 4 3 2 1
Library of Congress Cataloging in Publication Data Holcombe, Randall G. An economic analysis of democracy.
(Political and social economy) Bibliography: p. Includes index. 1. Public administrationDecision making. 2. Finance, PublicDecision making. 3. Voting. 4. Democracy. I. Title. II. Series. JF1525.D4H65 1985 330.12 84-23584 ISBN 0-8093-1211-5
Page v
Contents
Figures
vii
Tables
ix
Preface
xi
1 Introduction
1
2 The Origins of Democracy
15
3 The Median Voter
38
4 Coalitions and Stability in Multidimensional Issues
67
5 Taxes and Redistribution
95
6 Distributive Government
118
7 Interest Groups and Distributional Activity
143
8 The Government Budget Constraint
162
9 Cycles, Stability, and Economic Efficiency
186
10 The Growth of Government
208
Notes
233
Bibliography
257
Index
267
Page vii
Figures
2.1 Selection of the optimal voting rule
31
3.1 The median voter model
41
3.2 The median voter model with a large number of voters
44
3.3 Agenda control in the median voter model
51
3.4 The median voter model with variable tax shares
60
3.5 The median voter model with variable benefit shares
62
3.6 Variable tax or benefit shares with a large number of voters
63
4.1 Cycles in multidimensional issue space
76
4.2 Cycles in multidimensional issue space
77
4.3 The majority rule issue space
78
4.4 A median voter equilibrium in multidimensional issue space
79
4.5 A median voter equilibrium with discrete movements in issue space
81
4.6 Median voter decisions in two dimensions
83
6.1 A three-dimensional preference map
122
6.2 Preferences from figure 6.1 mapped into one dimension
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