Public Choice Theory - this teaching (discipline) within which research methods and techniques by which people use government agencies for their own benefit.Analysis of the object is performed in conditions of both representative and direct democracy.In this regard, public choice theory mainly studies the electoral process, management policies, and other activities of the deputies.
analysis begins with direct democracy, subsequently transferred to the representative acting as a limiting factor.The scope of the study includes subjects and methods of regulating the economy.Teachings in some cases referred to as the new political economy due to the fact that it explores the political mechanism of macroeconomic decisions.
Public Choice Theory criticized Keynesians, casts doubt on the effectiveness, the appropriateness of government intervention in the economic system of the country.Representatives of the teaching as an object of analysis chosen not impact the financial and monetary tricks, but directly by the government decision-making procedure.
Formed in the fifties and sixties of the 20th century, the theory of public choice has become an important component of the neo-institutional learning.The immediate impetus for the development of the discipline began to debate in the thirties and forties.At that time, there were problems of welfare economics and market socialism.In the sixties the years quite wide repercussions on the work of Arrow Social Choice and Individual Values.In this work we correlated concept of the state and the individual.Contrary to this idea appeared Tullock and Buchanan.They drew an analogy between the market and the state.At the same time the relationship between citizens and the government addressed in accordance with the principle of "quid pro quo".It is on these ideas and subsequently became based theory of public choice.
first used limit the analysis in the study of the budget process, the modeling of supply and demand in the market of public wealth were the representatives of the Italian school of government financiers.These figures were the following personalities: Mazzola, Pantaleoni, Viti de Marco.Formulated at the end of the 19th century ideas were further developed in the works of the representatives of the Swedish School of Economics.So, Wicksell and Lindahl paid attention mainly political process that ensures a certain orientation of fiscal policy in the state.
It should be noted that the developed approaches and ideas for a long time have not been applied in practice.By the forties and fifties in the scientific debate began to actively penetrate the theory of the rational nature of the activities and behavior of individuals in politics.This largely became possible due to the publication of works of Arrow, Downs, Schumpeter, Black.
As a result, the development of ideas led to the formation of the complex regulations, which actually is the theory of public choice.A key role in the development of the doctrine belonged to representatives of Virginia School of Economics.
Within the limited resources a person has to choose one of the alternatives.At the same analytical methods for studying the behavior of individual market conditions are considered universal.In this connection, they can be applied to each area, wherein a person must make a choice.
as the main prerequisites for the formation of scientists support the fact that the activities of people in the political sphere is associated with the defense of their own interests.Thus, the clear distinction between politics and business do not exist.
