Public Choice with Unequally Rational Individuals: Implications for Economic Analysis of Governments

@inproceedings{Pelikn2007PublicCW,
  title={Public Choice with Unequally Rational Individuals: Implications for Economic Analysis of Governments},
  author={Pavel Pelik{\'a}n},
  year={2007}
}
The microeconomic public-choice analysis of governments as organizations of perfectly rational individuals contrasts with macro economic approaches, dealing with governments as wholes. This paper shows that important policy questions require analysis to be microeconomic, but also to admit bounded rationality, with different bounds for different individuals. Rationality must then be treated as a unique scarce resource, used for deciding on its own uses, and requiring for its efficient alloc… CONTINUE READING