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An Economic Theory of Political Action in a Democracy
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For example, this article argued that the private sector is a self-regulating mechanism and that any government action beyond maintenance of law and order is "interference" with it rather than an intrinsic part of it.Abstract:
IN SPITE of the tremendous importance of government decisions in every phase of economic life, economic theorists have never successfully integrated government with private decision-makers in a single general equilibrium theory. Instead they have treated government action as an exogenous variable, determined by political considerations that lie outside the purview of economics. This view is really a carry-over from the classical premise that the private sector is a self-regulating mechanism and that any government action beyond maintenance of law and order is "interference" with it rather than an intrinsic part of it.2 However, in at least two fields of economic theory, the centrality of government action has forced economists to formulate rules that indicate how government "should" make decisions. Thus in the field of public finance, Hugh Dalton states:read more
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Accountability and Corruption: Political Institutions Matter
TL;DR: Lederman, Loayza, and Soares as mentioned in this paper used a cross-country panel to examine the determinants of corruption, paying particular attention to political institutions that increase political accountability.
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Corporate Financial Statements, a Product of the Market and Political Processes
TL;DR: In this article, an outline for a theory of financial statements is presented, where financial statements are viewed as products of both markets and political processes and the interactions among individuals and groups in these processes.
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The Influence of Partisan Motivated Reasoning on Public Opinion
TL;DR: This article explored partisan motivated reasoning in a survey experiment focusing on support for an energy law and identified two politically relevant factors that condition partisan motivation: (1) an explicit inducement to form an “accurate” opinion, and (2) cross-partisan, but not consensus, bipartisan support for the law.
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The politics of government investment
Ran Duchin,Denis Sosyura +1 more
TL;DR: The authors investigated the relation between corporate political connections and government investment and found that politically connected firms are more likely to be funded, controlling for other characteristics, yet investments in politically connected companies underperform those in unconnected ones.