Public Choice Research Articles

A passzív rezisztencia politikai gazdaságtana: száz éve született Jászay Antal

This short essay is aimed at commemorating Antal Jászay, or Anthony de Jasay, who made his mark at the interface of political philosophy and public choice, and 2025 is the 100th anniversary of his birth. His relative obscurity is due both to his avoidance of the institutions of the academic world and to the ‘conservative anarchist’ conclusions of his philosophy. However, Jasay is a classic in public choice literature who should not be forgotten – which, of course, would require getting to know him first. JEL codes: D70, B25

Evolution of cooperation with early social influence for explaining collective action.

The logic of collective action has laid a foundation for the research of public choice, and the success of collective action has been a long-term discussion when free-riding mechanism is considered in the dynamics. This study proposes a , which provides a novel dimension for explaining the logic of collective action. Under the framework, the accumulation of early social influence, conformity, and the pressure of relationship updating in small groups is discussed. The experiment results show that the accumulation of early social influence indirectly promotes the participants of collective action; conformity is conducive to stimulating collective action, but relies on the accumulation of early social influence; the pressure of relationship updating plays the small-group role, which promotes the participation of collective actions; all these effects are helpful in forming the cascade of cooperators, and prevent the coexistence of participants and non-participants of collective action.

Subsidy Removal, Corrupt Practices and Implications on the Nigerian Economy, 2012-2023

Subsidy removal and corruption significantly impact the Nigerian economy. This study investigates the impact of subsidy removal and corruption on the Nigerian economy from 2012 to 2023. The main objective is to analyse the economic consequences of subsidy removal policies and the types and forms of corruption associated with them. The study adopted the Public Choice Theory as the theoretical framework for understanding the decision-making processes and behaviour of stakeholders involved in subsidy removal and corruption. Methodologically, the study employs a qualitative approach, using secondary data, analysed through content and historical analysis. Findings indicate that while subsidy removal policies aim for fiscal sustainability, they often lead to inflationary pressures, social unrest, and public dissatisfaction. Moreover, corruption exacerbates these challenges, undermining governance, transparency, and accountability. Based on the findings, the study recommends strengthening anti-corruption measures, enhancing governance and institutional capacity, implementing targeted social safety nets, fostering public-private partnerships, and enhancing international cooperation to address the challenges posed by subsidy removal and corruption. These recommendations aim to promote transparency, accountability, and inclusive economic development in Nigeria. Overall, this study contributes empirical evidence, theoretical insights, and policy recommendations for understanding and addressing the complex interactions between subsidy policies, corruption dynamics, and socio-economic development in Nigeria.

A Patent and a Prize

Abstract This paper examines a simple and old question: should innovators receive a patent or a prize? The answer I provide is equally simple: they should receive both. The literature on patents versus prizes has proceeded mostly under the assumption that there should be a choice between a regime of patents and a regime of prizes in which patents fall into the public domain upon award of the prize. There are significant “public choice costs” under the prize plans. By this I mean there are risks of inappropriate transfers to patentees – that is, looting – and of confiscation of patentees, through the conduct of or through the omissions of government agents. The innovation regime I propose is a patent-plus-prize scheme. The patentee would receive the patent and a prize that approximates consumer surplus. Public choice costs are considerably lower than under prize schemes: there would be no looting and no risk of confiscation under patent-plus-prize. In addition, private and social incentives to innovate are aligned.

The Economic Study of Politics

Economic and political phenomena coexist in society, but are often seen as divergent spheres of human action and interaction. A theoretical manifestation of this separation is the assumption that while economic agents act in their own self-interest, political agents are motivated by the public interest. Additionally, it is commonly assumed – if only implicitly – that political agents possess all the necessary knowledge for rational action, effectively portraying political agents as omniscient beings. Drawing on public choice theory and on the economic literature on the nature of knowledge, we review arguments that challenge the two assumptions.

Digital Public Consultation and the Opportunities for Participatory Democracy: An Exploratory Study

The decision-making process involves different stages in which the authorities should ensure that citizens’ views and concerns are voiced by encouraging citizens to become directly involved in policy areas and issues so that they can actively engage in collective public choices. Public consultation therefore plays a crucial role in promoting democratic values and strengthening the legitimacy of decision-making processes in governments and organizations. This study aims to analyze young people’s reaction to the general trend towards digitalization and the extent to which young people are willing to adopt new digital methods of public consultation. The results show that the digitalization trend is sparking enthusiasm for innovation and efficiency among our respondents, but they also highlight concerns about data security and the impact on jobs. Our study finds a generally positive attitude towards the use of online platforms for public consultations, highlighting the role of online platforms in increasing the trust of European citizens in the European legislature, but at the same time questioning the importance the European Union would attach to opinions expressed through digital platforms and the representativeness of the group of participants. The results of this study have strong administrative and managerial implications and can provide important insights into the search for solutions regarding the implementation of digitalization and online consultation in EU legislation.

Modeling and testing strategic interdependence and tipping in public policy implementation

We develop a game-theoretic model of strategic interdependence and tipping in public policy choices and show that the model can be estimated by probit and logit estimators. We test its validity and applicability by using daily data on state-level COVID-19 responses in the United States. Social distancing via shelter-in-place (SIP) strategies and wearing masks emerged as the most effective nonpharmaceutical ways of combatting COVID-19. In the United States, choices about these policies are made by individual states. We develop a game-theoretic model of such choices and test it econometrically, confirming strong interdependence in the implementation of these policies. If enough states engage in social distancing or mask wearing, others will be tipped to follow suit. Policy choices are influenced mainly by the choices of other states, especially those of similar political orientation and to a lesser degree by the number of new COVID-19 cases. The choice of mask-wearing policies is more sensitive to peer choices than the choice of SIP policies, and Republican states are much less likely than Democratic to introduce mask-wearing policies. The choices of policies are influenced more by political than public health considerations. These findings emphasize strategic interdependence in policy choice and offer an analytical framework for these complex dynamics.

Insurrection through the balance sheet

Abstract What has actually happened to the political economy of the United States over the last half-century? For too long now, ‘neoliberalism’ has been the standard answer given, yet today, the term seems to have lost both its analytic and critical capacities. Melinda Cooper’s Counterrevolution offers readers a fresh and productive response to this fundamental question of contemporary political economy. Cooper comes neither to praise nor bury neoliberalism but to shift from the level of generalizing accounts or polemics to the level of concrete ideas and the policies they have engendered. She directs attention away from the Chicago school and toward both the Virginia School of public choice theory and a long line of supply-side thinkers. On strictly economic grounds, these two strands ought to be in tension, but Cooper illuminates their political convergence: agreeing to constrain ‘certain kinds of public spending’, they implemented a politics committed to inflating asset values for the wealthy while holding workers’ wage growth in check. This balance-sheet insurrection, which directs the flow of capitalist value upward, stopped and reversed the potential Keynesian revolution that had been underway in the 1950s and 1960s.

Information Asymmetric Cooperative Public Choice Games

This paper introduces information asymmetry, cooperation and payoff compensation mechanism into public choice games, and establishes an analytical frame for information asymmetric cooperative public choice games. This paper examines the coalition formation and the distribution of the cooperative payoff under the equilibrium public choice (if it does exist) in an information asymmetric public choice game under unanimity rule and those in an information asymmetric public choice game under majority rule, respectively. Arrow [1951] and Sen [1970] assumed that there is no cooperation and payoff compensation mechanism in a public choice game, and showed that rational individuals with individual sovereignty could not reach consensus on any public choice. This paper shows that, even in a public choice game of information asymmetry, the cooperation and payoff compensation mechanism may lead to the coalition equilibrium, the achievement of equilibrium public choice, and the distribution equilibrium of cooperative payoff of the coalition which supports the equilibrium public choice, whether the public choice games are under unanimity rule or under majority rule.

An Analysis on How Historical Events are Impacting Indian Modern Public Policies

Understanding the historical connections behind public policy choices is crucial for effective governance, especially in a diverse and vibrant society like India. Many contemporary policies are often seen as immediate responses to current challenges, yet they are deeply rooted in historical frameworks that shape their purpose and design. In this paper, I explore how classical governance models influence modern Indian public policies and examine how this historical continuity impacts their effectiveness and relevance today. By analyzing five key areas—Incrementalism, Ayushman Bharat, Panchayati Raj, Atmanirbhar Bharat, and Reservation policy, I aim to uncover the rich interplay between our past and present. Ultimately, this research advocates for a deeper appreciation of historical context in policy-making, as it can enhance our understanding and response to the evolving needs of Indian society.

EFFECT OF PUBLIC PRIVATE PARTNERSHIP FINANCING STRUCTURE ON COMPLETION OF GEOTHERMAL ENERGY DEVELOPMENT PROJECTS IN KENYA

Objective: To determine the effect of Public Private Partnership (PPP) financing structure on the completion of geothermal energy development projects in Kenya. Theoretical Framework: The study used agency and public choice theories to analyze the dynamics between PPP financing structure and completion of geothermal energy development projects. Methodology: A cross-sectional census survey in Kenya surveyed 48 geothermal energy development projects, collecting quantitative data through structured questionnaires and qualitative insights from industry regulators, financiers, and practitioners. A combination of descriptive, correlation, and linear regression statistical models were applied. Multiple diagnostics tests and data triangulation were performed. Results and Discussion: The study results provide strong statistical evidence depicting a positive relationship between PPP financing structure and the completion of geothermal energy development projects in Kenya. The findings suggest that as the level of PPP involvement increases, so does the likelihood of faster project completion. The study also reveals that a balanced PPP financing structure has a substantial effect on the completion of geothermal energy development projects. The analysis demonstrates that a hybrid PPP financing structure comprising recommended proportions of private and government equity, commercial and concessional loans, hybrid finance, and grants significantly affects project completion outcomes. Research Implications: The study emphasizes the significance of a structured PPP financing model, comprising private and government equity, concessional and commercial loans, hybrid finance, and mixed grants, in mitigating inherent PPP risks for enhanced project completion outcomes. In addition, effective government support measures and robust delivery capability of developers jointly influence the two variables in a significant manner. Originality/Value: This study uniquely analyzes the influence of PPP financing structure on the completion of geothermal energy development projects in Kenya, integrating quantitative and qualitative data for a comprehensive perspective, thus offering essential insights for stakeholders.

Determinants of receiving government support by small and medium-sized enterprises in Russia

Government support measures help companies overcome various restrictions impeding their growth and develop ment, which is of special relevance for small and medium-sized enterprises (SMEs). These measures, therefore, must reach the target companies and ensure efficient allocation of resources. The article reveals key characteristics of SMEs in Russia that increase the probability of them receiving government support. The research methodology is based on public interest theory, public choice theory and the concept of economic freedom. The research method is a two-step regression analysis, in which the binary choice model is first evaluated, and then the LASSO model is used to assess the impact of the textual content of the companies’ websites. The dataset of the study is represented by data on 2,176 Russian metallurgical enterprises for 2020–2023, of which 57% were receiving government support. The results of the first step of evaluation showed that the organization’s age and size meas ured by revenue were the key factors associated with the probability of receiving government support. At the second step, we found that the mention of certain goods or materials on the websites, the enterprise’s location and orientation towards foreign stakeholders were significantly related to the likelihood of getting state support. The study offers tools for analyzing the determi nants of government support for SMEs and highlights the importance of this analysis for more efficient allocation of government resources.

NHS action on social and economic development in England: Vague national policy expectations

Under recent reforms to the National Health Service (NHS) in England, NHS organizations have been given new objectives to contribute to social and economic development. Health systems in other high-income countries are pursuing related approaches. This paper analyses national policy documents to understand the framing of the NHS's new policy priorities on social and economic development. We focus on the role of NHS integrated care systems—area-based planning bodies responsible for managing NHS resources and coordinating local services. National policy is vague about what social and economic development means in practice. There is limited guidance on which approaches local organizations should prioritize, and which organisations are responsible for implementation. Greater clarity from national policymakers and an overarching framework to guide local action is needed to reduce the risk of inaction, poorly targeted interventions, and missed opportunities for learning and evaluation. Policymakers and health system leaders also need to be realistic about the limits of local action given the importance of national public policy choices in shaping the social determinants of health. Coordinated policy action and investment across government is needed to address underlying social and economic conditions.

Behavioral symmetry with humanomics: public choice and moral community

Behavioral symmetry with humanomics: public choice and moral community

Electing in the dark? Voting behavior in light of polarization

This paper develops a behavioral public choice model. It provides testable hypothesis to explain voter shifts in European national elections in the last decade. The model comprises three blocs of parties, the government, the opposition and so-called “profiteers”. Retrospective voters evaluate the performance of each bloc. Furthermore, it introduces an exogenous polarizing event that can affect the government’s and the profiteers’ chance to satisfy voters. Moreover, voters are subject to the negativity bias, which means that negative changes in probabilities to satisfy are stronger than positive changes. This framework yields various results on voting behavior under polarization. Most are robust to the introduction of non-voting. The government only profits from polarization iff sufficiently many positively voters are polarized in their favor to outweigh both the negativity bias and the increased competitiveness by profiteers due to polarization. Profiteers, strengthened by polarization, harm the opposition and increase voter turnout. Additionally, a higher negativity bias impairs the government, decreases voter turnout and benefits the opposition and profiteers.

Introducing the comparative semi-presidential database (CSPD)

AbstractIn this article, we introduce a new dataset—the Comparative Semi-Presidential Database (CSPD)—covering classifications of semi-presidential regimes. In contrast to other databases, the CSPD offers several classifications based on different definitions of semi-presidential regimes along with subtypes of semi-presidential regimes. We use definitions developed by Elgie (in: Elgie (ed) Semi-presidentialism in Europe, Oxford University Press, Oxford, 1999), Cheibub et al. (Public Choice 143:67–101, 2010), Shugart (French Politics 3(3):323–351, 2005) and Shugart and Carey (Presidents and assemblies: constitutional design and electoral dynamics, Cambridge University Press, New York, 1992). Additionally, we present a modified definition of semi-presidential regimes based on the conceptual discussion in the field. The database covers all independent states from 1900 to 2021. Using empirical analyses, we compare the classifications, the importance of conceptualisation and presenting our measurement for semi-presidential regimes.

교육바우처 정책 사상의 원류와 그 원리에 대한 소고

This study explores the ideological foundation of education vouchers, focusing on educational support programs for commoners during the French Revolution and the educational philosophies of Thomas Paine and John Stuart Mill. Thomas Paine emphasized the expansion of educational choice through government support and assistance for the poor, while John Stuart Mill advocated for educational improvement through free choice and competition. Their philosophies have become core ideas in the modern school choice movement and were institutionalized in the education voucher policy by Milton Friedman. This study analyzes the outcomes of education vouchers from the perspective of public choice theory and examines models such as the Tiebout hypothesis, Demand Side Financing, and Home and Community-Based Services (HCBS). Additionally, it explores the relationship between Hirschman's Exit-Voice-Loyalty model and the principle of voucher choice. In conclusion, this paper emphasizes how these concepts are related to choice and competition in public services. Furthermore, it highlights that the principles inherent in education vouchers serve as an important ideological foundation for democracy and economic development.

중위투표자 관점에서의 공공사회복지 지출 분석

This paper analyzes the growth of public social expenditures in Korea from a public choice perspective. Specifically, based on the median voter theory, we conduct an empirical analysis of social insurance expenditures such as national pension, national health insurance, and public social expenditures using time series data from 1993 to 2022. The empirical results support that changes in the budget constraint for lifetime utility maximization of the median voter, including financial assets, remaining life expectancy, and remaining working year, are associated with an increase in public social expenditure. In addition, macroeconomic variables such as the real interest rate, real economic growth, and the tax base per recipient are also found to affect public social expenditure. This paper suggests that as the age of the median voter increases, public social expenditures, including national pensions and national health insurance, are bound to increase both naturally and politically.

Place branding strategies through Winter Olympic games

ABSTRACT Purpose The purpose of this research is to examine how place branding strategies, undertaken by countries which belong to distinctive clusters, can manifest differently via the Winter Olympic Games. Methods In this paper, the experiences of Winter Olympics hosted by three countries (Russia, South Korea, China), are examined using Richelieu et al.’s framework, alongside clusters introduced in 2022. The study adopts a content analysis. Findings The framework is validated: the perceived importance of soft power and a country’s resources, differences in the measures and strategies used by the host countries, are confirmed. Practical implications Countries that set higher importance on sport diplomacy (Russia and China: “diplomacy branding”) are more assertive. In contrast, South Korea takes a more balanced approach, as it considers its action across a wider spectrum of areas (“balanced structure”). Research contribution The framework can explain the differences in the experiences of host countries, by also referring to the public choice theory. This paper illustrates how place branding strategies through sporting events, such as Winter Olympics, can differ between countries depending on the perceived role of public diplomacy, sport diplomacy, soft power and the economic resources invested. Originality/Value The article widens avenues for future research on major sporting events, through different clusters, by borrowing a holistic approach.

A Strategic Framework of SARS-CoV-2 Genomic Surveillance in Bangladesh.

The global pandemic caused by SARS-CoV-2 has underlined the significance of strict genomic surveillance to track virus evolution and the possible emergence of new variants, particularly in densely populated countries like Bangladesh. This study outlines a strategic framework of genomic surveillance to track the evolution of the virus in Bangladesh between June 2021 and December 2022 through the National SARS-CoV-2 Variant Surveillance (NSVS) program involving collaboration across 4 major institutes and 13 hospitals nationwide. We aimed to capture the variants of SARS-CoV-2 throughout the country utilizing standardized procedures, modern sequencing technology, and stringent quality control, promoting data accuracy and the timely detection of new variants of concern. We sequenced over 2200 genomes, documenting the prevalence of the Delta variant initially, followed by the emergence of Omicron variants BA.1, BA.2, BA.5, and XBB, each affecting transmission rates and vaccine efficacy differently. The clinical manifestations of the variants differed, with some symptoms occurring more frequently in Delta cases and vice versa. Vaccinated individuals were more affected by Omicron cases compared to Delta cases. These variants were responsible for two major COVID-19 waves in the country, each with significant clinical effects. Phylogenetic analyses placed the local SARS-CoV-2 variants within a global context, indicating the Delta variant likely entered from India and Omicron from Europe. This research highlights the significance of collaborative surveillance strategies for guiding public health choices and the critical role of genomic analysis in monitoring virus evolution, shaping targeted pandemic responses. Bangladesh's contributions significantly enhance global insight into COVID-19's genomic evolution.