Traditionally, the demand for public expenditures has been estimated using as explanatory variables the average values of per capita income, as well as other variables. The results of this approach are disappointing which is due to the lacking theoretical basis. The public choice model, on the...

This paper analyzes bureaucracy within the context of the politico-economic framework using the rational choice approach. Bureaucracy interacts with various groups of decision-makers, and its influence depends on institutional differences, in particular representative democracy with or without...

The relative efficiency of private and public production of a public service (in particular households' refuse collection) is studied using the theory of property rights and the economic theory of bureaucracy. Both kinds of institutional organization of production result in inefficiencies if...

Popularity and reaction functions as the main relationships between the economic and political sectors are theoretically derived and empirically estimated with quarterly data for the U.S. One of the purposes is to endogenize government behavior in macro-econometric models. Unemploymentj...

The goal of the rich countries should be to aid the poor countries to increase their standard of living but not to increase their holding of weapons. It is shown that a basic conflict of goals arises. The structure of consumption of the recipient countries cannot be influenced by giving the aid...