Public Choice Theory

Public choice theory is the application of economic principles to politics. It is most often considered to be an area of study lying between market exchange [Page 1720]“economics” and “political science” ideologies, although some scholars consider it to be more a branch of economics. Public choice theory's main tenet is that voters, politicians, and government officials are motivated by the same basic economic factors as market actors and as a result do not always operate in the public's best general interest. Legislators are considered to make decisions with tax payers'money to advance predominantly (if not exclusively) their own self-interests and are primarily interested in their own power, prestige, advancement, reputation, status, income, and perquisites. Public choice theory offers a critical examination of the decisions made ...