What is public choice theory in public policy?

Public choice, or public choice theory, is “the use of economic tools to deal with traditional problems of political science”. Its content includes the study of political behavior. Since voter behavior influences the behavior of public officials, public-choice theory often uses results from social-choice theory.

What is rational choice theory in public policy?

Rational choice theory states that individuals rely on rational calculations to make rational choices that result in outcomes aligned with their own best interests. Many economists believe that the factors associated with rational choice theory are beneficial to the economy as a whole.

What is the assumption underlying public choice theory?

Most public choice theory rests on four assumptions: (i) individual material self-interest sufficiently motivates most economic behaviour, which (ii) is sufficiently understood by the use of neoclassical economic theory; and since (iii) the same individual material self-interest sufficiently motivates most political …

Who is an advocate of the public choice theory?

The public choice theory repudiates this view and takes a poor view of bureaucracy William A. Niskanen, the prominent advocate of public choice theory opines that the career bureaucracy is self-aggrandizing and shows indefi­nite capacity for its expansion. He has made brilliant analysis of bureaucratic functioning.

What does Buchanan’s theory of Public Choice mean?

The results of his study supported Buchanan’s theory of public choice that, in general, people vote based on their economic self interest. Those working for government agencies voted against the Act that would not directly benefit them, and those in the private sector voted for it.

Is the public choice approach theory unrealistic?

Criticism – This concept of Public Choice Approach theory has been widely criticized by noted authors and scholars on its inability to cope up with on field situations and circumstances. They are of the view that Public Choice Approach theory is extreme in its opinion and hence unrealistic.

Why is public choice theory important in India?

These market forces induce a feeling of competitiveness which is ultimately beneficial to the public. In India proponents of Public Choice Theory are of the view that all Public Distribution Schemes that are being run by the Government should be immediately stopped as they have become a platform for excessive corruption.