It should be noted that public choice theorists do not assume that all individuals are driven purely by narrow self-interest. Over the years, public choice theorists have conducted extensive research on the public policy implications of viewing politics through the lens of economics. Public choice theorists, however, have argued that the risk of market failure should first be weighed against the risk of government failure before favouring any regulation of the marketplace. Public choice theorists also look into how self-interested behaviour of people affects the outcomes of elections and other political processes. Public choice theory also predicts trends in public finance, which refers to how governments collect and spend tax money.

Source: The Hindu December 02, 2021 11:58 UTC