Public Choice Analysis Of The Choice Of Public Service
Assess the Public Choice Analysis of the Growth of the Public Service, and the Motives of the Public Servants
Introduction
During this assignment I hope to explain the Public Choice Theory regarding the increasing public expenditure through a review of the theory’s origins, its assumptions, the actors involved in the public service, their principal interests and the means to control the state’s own self-interest.
Public choice theory is derived from the economic theory (mainly game and decision theory) of rational choice but truly began with Buchanan and Tullock’s book regarding political organization of a free society from an economic perspective. It attempts to explain the behaviour of politicians and bureaucrats revealing trends towards …show more content…
Given their permanent fixture in government, they have the potential to exert real influence within public expenditure unless regulated by external bodies. Their greater knowledge of their agencies’ functions ensures their advantage over legislators in budget negotiations. The result is a larger and less efficient bureaucracy than electors actually want. If left unchecked, “the bureaucrats maximize the total budget of their bureau”. Possible solutions to these issues are discussed further into the assignment.
The assumptions regarding behaviour of bureaucrats (/senior civil servants) in Niskanen’s model
1) Bureaucrats are motivated by self-interest. Public Choice Theory assumes that private sector workers and public servants are the same but public servants are not restricted by market discipline but cannot make a profit. Public servants may only achieve their motives by maximisation of their budgets leading to producer-led rather than consumer-driven service provision.
2) A public sector bureau is not profit-based. Bureaucrats have no personal interest in cost-saving, and are motivated to create new work-streams. Sponsors’ representatives are induced to choose bureaucrat’s ideal
Introduction
During this assignment I hope to explain the Public Choice Theory regarding the increasing public expenditure through a review of the theory’s origins, its assumptions, the actors involved in the public service, their principal interests and the means to control the state’s own self-interest.
Public choice theory is derived from the economic theory (mainly game and decision theory) of rational choice but truly began with Buchanan and Tullock’s book regarding political organization of a free society from an economic perspective. It attempts to explain the behaviour of politicians and bureaucrats revealing trends towards …show more content…
Given their permanent fixture in government, they have the potential to exert real influence within public expenditure unless regulated by external bodies. Their greater knowledge of their agencies’ functions ensures their advantage over legislators in budget negotiations. The result is a larger and less efficient bureaucracy than electors actually want. If left unchecked, “the bureaucrats maximize the total budget of their bureau”. Possible solutions to these issues are discussed further into the assignment.
The assumptions regarding behaviour of bureaucrats (/senior civil servants) in Niskanen’s model
1) Bureaucrats are motivated by self-interest. Public Choice Theory assumes that private sector workers and public servants are the same but public servants are not restricted by market discipline but cannot make a profit. Public servants may only achieve their motives by maximisation of their budgets leading to producer-led rather than consumer-driven service provision.
2) A public sector bureau is not profit-based. Bureaucrats have no personal interest in cost-saving, and are motivated to create new work-streams. Sponsors’ representatives are induced to choose bureaucrat’s ideal