The Myth of the Rational Voter: Why Democracies Choose Bad Policies (Princeton University Press, 2007)
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JUL 2 0 2006 C 2005 Sunil Tankha
The Risk of Reform: Privatisation and Liberalisation in the Brazilian Electric Power Industry by Sunil Tankha Master in Public Affairs The University of Texas at Austin, 1997 Submitted to the Department of Urban Studies and Planning in Partial Fulfilment of the Requirements for the Degree of DOCTOR OF PHILOSOPHY IN ECONOMIC DEVELOPMENT at the MA SSACHUSETTS INSTITUTE MASSACHUSETTS INSTITUTE OF TECHNOLOGY OF TE February 2006 JUL 2 0 2006 C 2005 Sunil Tankha. All rights reserved. LIBRA RIES The author hereby grants to MIT permission to reproduce and to distribute publicly paper and electronic copies of this these document in whole or in part. Signature of A uthor ................................................ Department of Urban Studies and Planning August 22, 2005 C ertified by ......................................... / Ali'e AmNden Professor of Political Economy Dissertation Chair Accepted by ................ Frank Levy Chair, Ph.D. Program The Risk of Reform: Privatisation and Liberalisation in the Brazilian Electric Power Industry by Sunil Tankha Submitted to the Department of Urban Studies and Planning in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy in Political Economy ABSTRACT In 1996, when Brazil was well-underway to privatising and liberalising its electric power industry, few would have predicted that within five years the reforms would be a shambles. Like its nighbours Argentina and Chile, Brazil based its electricity reforms on the orthodox therapies of privatisation and liberalisation. The industry was well-positioned to benefit from the reforms: it was technically sophisticated, relatively efficient, and attractive to both domestic and foreign investors. Electricity rates had been suppressed for a long time, but they were not populist and it was the residential customer who cross-subsidised industry. -
A Response to the Libertarian Critics of Open-Borders Libertarianism
LINCOLN MEMORIAL UNIVERSITY LAW REVIEW __________________________________ VOLUME 4 FALL 2016 ISSUE 1 ____________________________________ A RESPONSE TO THE LIBERTARIAN CRITICS OF OPEN-BORDERS LIBERTARIANISM Walter E. Block, Ph.D. Harold E. Wirth Eminent Scholar Endowed Chair and Professor of Economics Joseph A. Butt, S.J. College of Business I. INTRODUCTION Libertarians may be unique in many regards, but their views on immigration do not qualify. They are as divided as is the rest of the population on this issue. Some favor open borders, and others oppose such a legal milieu. The present paper may be placed in the former category. It will outline both sides of this debate in sections II and III. Section IV is devoted to some additional arrows in the quiver of the closed border libertarians, and to a refutation of them. We conclude in section V. A RESPONSE TO THE LIBERTARIAN CRITICS OF OPEN-BORDERS LIBERTARIANISM 143 II. ANTI OPEN BORDERS The libertarian opposition to free immigration is straightforward and even elegant.1 It notes, first, a curious bifurcation in international economic relations. In the case of both trade and investment, there must necessarily be two2 parties who agree to the commercial interaction. In the former case, there must be an importer and an exporter; both are necessary. Without the consent of both parties, the transaction cannot take place. A similar situation arises concerning foreign investment. The entrepreneur who wishes to set up shop abroad must obtain the willing acquiescence of the domestic partner for the purchase of land and raw materials. And the same occurs with financial transactions that take place across 1 Peter Brimelow, ALIEN NATION: COMMON SENSE ABOUT AMERICA’S IMMIGRATION DISASTER (1995); Jesús Huerta De Soto, A Libertarian Theory of Free Immigration, 13 J. -
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MOLINARI REVIEW Molinari Review 1, No. 2 (Fall 2019) © The Molinari Institute 2019 All content in this journal is licensed under a Creative Commons Attribution 4.0 International License: http://creativecommons.org/licenses/by/4.0/ Published by: The Molinari Institute 402 Martin Avenue Auburn, Alabama 36830 U.S.A. ISBN: 978-1-947236-00-4 MOLINARI REVIEW The Molinari Review is a peer-reviewed, open-access, print-on-demand, interdiscipli- nary journal of libertarian research. We publish scholarship, sympathetic or critical, in and/or on the libertarian tradition, broadly understood as including classical liberalism, individualist anarchism, social anarchism, anarcho-capitalism, anarcho- communism, anarcho-syndicalism, anarcha-feminism, panarchism, voluntaryism, mu- tualism, agorism, distributism, bleeding-heart libertarianism, Austrianism, Georgism, public choice, and beyond – essentially, everything from Emma Goldman to Ayn Rand, C. L. R. James to F. A. Hayek, Alexis de Tocqueville to Michel Foucault. (We see exciting affiliations among these strands of the libertarian tradition; but you don’t have to agree with us about that to publish in our pages.) Disciplines in which we seek to publish include philosophy, political science, eco- nomics, history, sociology, psychology, anthropology, theology, ecology, literature, and law. We aim to enhance the visibility of libertarian scholarship, to expand the boundaries of traditional libertarian discussion, and to provide a home for cutting- edge research in the theory and practice of human liberty. INFORMATION FOR AUTHORS Submissions should be sent by email to Roderick T. Long at [email protected] as Word .doc or .docx files, prepared for blind review (i.e. all author information re- moved), and accompanied by an abstract of around 150 words as a guide for referees. -
Introduction to Public Choice Theory Public Choice Theory Politicians As Economic Agents Median Voter Theorem PPE 101 Voters As Economic Agents
Contents: Review Theories of Economic Justice Introduction to Public Choice Theory Public Choice Theory Politicians as Economic Agents Median Voter Theorem PPE 101 Voters as Economic Agents Utilitarianism: Utilitarianism: One that maximizes overall “utility” Maximize overall “utility” (wellbeing, Theories of (wellbeing, happiness, pleasure, etc.) Theories of happiness, pleasure, etc.) Economic Rawls: Economic Rawls: One that protects basic liberties and Protect basic liberties and allow Justice allows inequalities only insofar as Justice inequalities only insofar as they they benefit the least advantaged. What is a Just Distribution? What Should the Government benefit the least advantaged. Nozick: do? Nozick: One that results from wholly Should protect individual rights, voluntary transactions and just enforce contracts, provide protection. initial acquisitions. Introduction to Introduction to Public Choice Public Choice Theory Theory Public Choice Theory: What is it? What Moves Public Choice Theory: The application of economic Politics? methods to the study of political processes. What Moves Politics? Anthony Downs American Economist Public Choice Theory: Politicians - Every agent in the division of labor has a private motive (self-interest) and a social function (the role they play within their institution). - Politics is not exempt. - Politicians pursue private motives and, in the process (if the political institutions are designed appropriately), serve a social function that benefits others. Under perfect information, Under conditions of imperfect - Voters elect those who will information, benefit them. Public Choice Public Choice - Politicians do not know what - Government expects voters to voters want. vote based on how policies affect Theory Theory - Voters don’t know what them. politicians are doing, will do, or The Argument, Part I - The opposition offers The Argument, Part II should be doing. -
When: Friday, February 5Th 2016 Where: Florida State University's
When: Friday, February 5th 2016 Where: Florida State University’s campus Union Room 315, (3rd floor of Oglesby Union) Tallahassee, Florida 32306-1640 For Whom: College and High School Instructors of Principles of Economics The Gus A. Stavros Centers for Economic Education of Florida State University and the University of South Florida invite you to participate in the 12th annual workshop on the teaching of introductory economics at the college and high school levels. The workshop will kick off with a welcoming reception on Thursday, February 4th from 6:30 PM – 8:30 PM at the FSU Stavros Center for Economic Education located at 250 S. Woodward Avenue. The workshop presentations on teaching ideas and other innovations in economic education will begin Friday, February 5th in Union Room 315. This year’s workshop will feature presentations by several leaders on the front lines of economic education, including Patrick Walsh (St. Michael’s College), Steven Landsburg (University of Rochester), and Daniel Winchester (Institute for Humane Studies at George Mason University). Registration Information The registration fee for the workshop is $60. This fee covers the workshop, meals, and all related activities. We recommend that the $60 registration fee be paid by either check or money order (made out to FSU) and sent to the Center for Professional Development; 555 West Pensacola Street; Tallahassee, Florida 32306-1640. If you pay via credit card, you will be charged a processing fee. The credit card fee is beyond our control, which is why we want to make you aware of it. Below is a link you can use to register for the conference online: https://usi.capd.fsu.edu/emc00/register.aspx?OrgCode=10&EvtID=14509&AppCode=REG&CC=115102 903651 Hotel Information In February, state legislative committees will be meeting in Tallahassee. -
NOLA Workshop Agenda
GEORGE MASON UNIVERSITY ANTONIN SCALIA LAW SCHOOL Workshop on Labor Markets and Employment Law Sunday, November 11 - Thursday, November 15, 2018 The Ritz-Carlton, New Orleans Agenda Sunday, November 11 The Ritz-Carlton, New Orleans 3:00 – 5:00 pm Registration (Lobby) 5:00 – 6:30 pm Welcome, Introductions (Carrollton) Class 1: The Economics Perspective: Incentives Matter - Butler Reading Assignment: Butler, Drahozal, & Shepherd, Economic Analysis for Lawyers, 3rd ed., Carolina Academic Press (2014): Chapter I, pp.3-53 6:30 pm Welcome Reception and Dinner (Reception - Mercier Courtyard, Dinner - Crescent View) The History of the Law & Economics Center - Butler (Spouses welcome) Monday, November 12 The Ritz-Carlton (all class sessions held in Carrollton Room) 7:00 – 8:00 am Breakfast (Broadmoor) (Spouses Welcome) 8:00 – 9:15 am Class 2: Overview of Labor Markets - Morriss Reading Assignment: Butler, Drahozal, & Shepherd, Chapter VIII, §A, pp. 421-425 Kristle Cortes, Andrew Clover, and Murat Tasci, The Unintended Consequences of Employer Credit Check Bans on Labor and Credit Markets, Fed. Reserve Bank of Cleveland, Working Paper 16-25R2 (Jan. 2018) David Autor, Why Are There Still So Many Jobs? The History and Future of Workplace Automation, 29(3) J. Econ. Persp. 3-30 (2015). 9:15 – 9:30 am Break 9:30 – 10:45 am Class 3: Hiring, Employment at Will - Meiners Reading Assignment: Butler, Drahozal, & Shepherd, Chapter VIII, §B, pp. 425-453 Richard A. Epstein, In Defense of the Contract at Will, 51 U. Chi. L. rev. 947, 955-977 (1984). 10:45 – 11:00 am Break 11:00 am – 12:15 pm Class 4: Human Capital and Signaling - Morriss Reading Assignment: Butler, Drahozal, & Shepherd, Chapter VIII, §C, pp. -
Political Business Cycle and Economic Instability - Literature Review
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Tiganas, Claudiu-Gabriel; Peptine, Claudiu Article Political Business Cycle and Economic Instability - Literature Review CES Working Papers Provided in Cooperation with: Centre for European Studies, Alexandru Ioan Cuza University Suggested Citation: Tiganas, Claudiu-Gabriel; Peptine, Claudiu (2012) : Political Business Cycle and Economic Instability - Literature Review, CES Working Papers, ISSN 2067-7693, Alexandru Ioan Cuza University of Iasi, Centre for European Studies, Iasi, Vol. 4, Iss. 4, pp. 853-865 This Version is available at: http://hdl.handle.net/10419/198221 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend -
Pitfalls of Housing Redistribution
PITFALLS OF HOUSING REDISTRIBUTION CARL F. HOROWITZt Advocates of metropolitan-wide income and racial egalitarianism have been taking some hits lately. For once, the political juggernaut to reduce income and racial differences across community lines is running into detours instead of creating them. For example, late last summer a joint Senate and House Conference Committee overseeing spending by the U.S. Department of Housing and Urban Development (HUD) shelved a $149.1 million fiscal 1995 appropriation for the Moving to Opportunity (MTO) program.' MTO, modeled on HUD's Gautreaux Demonstration program, is intended to enable low-income inner-city recipients of Section 8 vouchers and certificates to move to communities with relatively little poverty concentration.2 Anthony Downs, senior fellow with the Brookings Institution, characterized the action as "part of the hysterical reaction by conservatives against having low- income people moving into their communities. "' If that were not enough, Republicans last November won a 4 majority in the House and Senate for the first time in forty years. GOP leaders have made it clear that they intend to reduce the size and reach of the federal government by scaling back or eliminating agencies repeatedly plagued by inefficiency, waste, and corruption. Owing largely to this Congressional realignment, the Clinton Administration came close to recommending that Congress abolish HUD, an agency not unknown for its share of corruption.' In response, HUD Secretary Henry Cisneros and key aides quickly t Washington Correspondent, Investor's Business Daily. ' Instrumental in the action was Maryland Democratic Senator Barbara Mikulski, who had "strong reservations" about the program and questioned its administrative oversight. -
0803Freemanbookreviews
vincingly challenges the argument that the biases of Book Reviews economists render their views on economic issues no more credible than those of the general public. He next considers Public Choice explanations for The Myth of the Rational Voter: why mistaken views inform the typical voter’s deci- Why Democracies Choose Bad Policies sions. Because of the extremely low probability that the by Bryan Caplan outcome of an election will turn on one vote, voters Princeton University Press • 2007 • 276 pages • $29.95 have little motivation to become well informed. This has become known as rational ignorance—voters are Reviewed by Dwight R. Lee rational to remain ignorant on most, if not all, issues n one sense, The Myth of the they’re voting on. But Caplan doesn’t think the concept IRational Voter makes a strong case of rational ignorance adequately explains voting behav- for democracy. Bryan Caplan, pro- ior. He argues that rationality requires updating one’s fessor of economics at George beliefs in response to new evidence or arguments. Even Mason University, argues that 1) by this minimum standard, however, most voters are citizens accurately communicate irrational because they have emotional attachments to their preferences to politicians their political views that make them resistant to oppos- through voting; 2) politicians are ing evidence. This is “rational irrationality” because, responsive to those preferences, Caplan explains, it’s subject to the law of demand.The except that 3) when voter preferences are particularly higher the personal cost of irrationality, the less irra- misguided, politicians will often exert leadership and tional people will be. -
Economic Process Seminar
BEST PRACTICES SYLLABUS (in progress) 2017 ECONOMIC PROCESS SEMINAR GENERAL THEMES AND CONCEPT LIST Public Choice a. The cost of elections b. The logic of voters c. Collective decision theory d. Pressure groups e. Rent seeking f. Theory of regulation and capture g. The citizen as a tributary h. The individual and the institutional reform Entrepreneurship i. Investment simulator j. Labor code k. Business Model Canvas Environment THEMES AND CONCEPT LIST BY DISCIPLINE l. Health sciences (medicine, nutrition, dentistry and psychology) m. Architecture n. Political Studies and International Relations o. Law DESCRIPTION 1. The cost of elections ● How are political or collective decisions made? ● What costs does a decision imply? MAIN OBJECTIVE Understanding the costs and consequences behind a political or collective decision. METHODOLOGY ● Discussion and review of relevant points in assigned readings REFERENCES: READINGS AND LITERATURE ● James Buchanan: Cost and Choice. Cap. 3. pp. 37 – 48 EVALUATION METHOD ● In-class participation ● Written evaluation of the concept 2. The logic of voters What is our role as voters? MAIN OBJECTIVE Analyze the cost incurred by individuals when they vote in the electoral system. METHODOLOGY ● Discussion and review of relevant points in assigned readings ● Videos REFERENCES: READINGS AND LITERATURE ● Anthony Downs: An economic theory of democracy. Cap. 14 The Causes and effects of Rational Abstention. pp. 260 – 276 ● Bryan Caplan: The Myth of the Rational Voter. Cap. 4 y 5 REFERENCES: AUDIOVISUAL RESOURCES ● Penn and Teller: Environmental Hysteria: Banning Water https://www.youtube.com/watch?v=yi3erdgVVTw EVALUATION METHOD ● In-class participation ● Written evaluation of the concept 3. Collective decision theory How do associations and organizations for civic purposes work? MAIN OBJECTIVE Understand the variables that affect a collective decision in the field of associations and organizations for civic purposes. -
Manifesto for a Humane True Libertarianism
Manifesto for a Humane True Libertarianism Deirdre Nansen McCloskey July 4, 2018 The first chapters of Humane True Liberalism, forthcoming 2019, Yale University Press. All rights reserved. #1. Libertarians are liberals are democrats are good I make here the case for a new and humane version of what is often called “libertarianism.” Thus the columnist George Will at the Washington Post or David Brooks at the New York Times or Steve Chapman at the Chicago Tribune or Dave Barry at the Miami Herald or P. J . O'Rourke at the National Lampoon, Rolling Stone, and the Daily Beast. Humane libertarianism is not right wing or reactionary or some scary creature out of Dark Money. In fact, it stands in the middle of the road—recently a dangerous place to stand—being tolerant and optimistic and respectful. It’s True Liberal, anti- statist, opposing the impulse of people to push other people around. It’s not “I’ve got mine," or “Let’s be cruel.” Nor is it “I’m from the government and I’m here to help you, by force of arms if necessary.” It’s “I respect your dignity, and am willing to listen, really listen, helping you if you wish, on your own terms.” When people grasp it, many like it. Give it a try. In most of the world the word “libertarianism” is still plain "liberalism," as in the usage of the middle-of-the-road, anti-“illiberal democracy” president of France elected in 2017, Emmanuel Macron, with no “neo-” about it. That's the L-word I’ll use here. -
An Economic Theory of Politics Revisited
NZAE Conference 2009 Birks: Downs with traction An Economic Theory of Democracy Revisited - Downs with Traction Paper for the NZAE Conference Wellington, 1-3 July 2009 Stuart Birks Centre for Public Policy Evaluation Massey University [email protected] (06) 350 5799 X2660 Abstract Anthony Downs assumed no false information, and no irrationality. Neither of these assumptions is realistic in politics. Adam Smith recognised the role of rhetoric (deliberative eloquence) in political debate. The significance of propaganda was recognised in the 1940s. Modern approaches to political processes, agenda setting and discourse analysis also emphasise persuasion. This paper begins by outlining logic and rhetoric as means of proof and persuasion. In section two the case is made that economics takes a logic-based view of society, whereas rhetoric is central to policy debate. Section three discusses the implications of a relaxation of Downs' assumptions to allow for a rhetoric-based view, with alternative propositions being suggested. Section four then considers the implications of these propositions for economists' approaches to policy. 1 NZAE Conference 2009 Birks: Downs with traction An Economic Theory of Democracy Revisited - Downs with Traction 1. Introduction Anthony Downs presented 25 ―specific testable propositions‖ in An Economic Theory of Democracy (Downs, 1957). These were based on assumptions about the political system, including the motives of politicians and voters. In his description he includes detailed consideration of uncertainty and the implications of there being costs associated with information gathering. Nevertheless, he states, ―Throughout this thesis, we assume that no false (i.e. factually incorrect) information exists…‖ (Downs, 1957, p.