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 “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 taxpayers’ 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 and ...