Making Economic Welfare Analysis Useful in the Policy Process: Implications of the Public Choice Literature

摘要: The major use of economic welfare analysis envisioned by its inventors and innovators was to offer guidance policy makers. However, in spite widespread advice economists, many policies that are apparently contrary accepted principles economics continue be employed. As a result, common view among economists is the process often misguided. On other hand, those closer argue (welfare) For example, agricultural policy, Cochrane argues measures derived from economist's model perfect competition irrelevant actual issues. With this opinion expressed within circles, several questions must raised. How can made relevant issues? Why has played role some issues not others? Do cases where followed represent failing process? Or do these analysis? Economists have acknowledged inapplicability respects. agriculture, which fairly competitive sector, Brandow "the far duplicated free markets," assumptions "breathtakingly heroic" (p. 271). Nevertheless, norm continued an absolute measuring rod performance. Is practice warranted even when failure serious? Under what standard efficiency (defined norm) inappropriate? What standards appropriate? This paper addresses drawing on public choice literature. literature roots (Arrow, Buchanan Tullock). diverged markedly empirical practices yield usually offered In broad terms, Marshallian normative evaluating alternative (suggesting at least implicitly most efficient should adopted or cost incurred so doing). much takes more positive understanding how various chosen under conditions processes appropriate. motivation for study improve usefulness process.