Modern Public Choice Theory

Modern Public Choice Theory is a framework that applies economic principles to political decision-making, analyzing how individual incentives and self-interest influence government actions and policies. It suggests that politicians, bureaucrats, and voters all act based on personal incentives rather than purely on the public good. By understanding this, we can better analyze issues like government inefficiency, lobbying, and the impact of regulations. The theory sheds light on how institutions and policies can be improved by recognizing that human behavior in politics often mirrors behavior in markets, where individuals seek to maximize their own benefits.