Kapitel 4 Grundzge der konomischen Theorie der Politik

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Kapitel 4 Grundzüge der ökonomischen Theorie der Politik (VL Theorie der WIPO WS 16/17

Kapitel 4 Grundzüge der ökonomischen Theorie der Politik (VL Theorie der WIPO WS 16/17 Prof. Dr. Thomas Wein)

4. 1 Das Problem • Ziel: Anwendung neoklassischer Mikroökonomik auf politischen Prozess • Mikroökonomik

4. 1 Das Problem • Ziel: Anwendung neoklassischer Mikroökonomik auf politischen Prozess • Mikroökonomik zeigt, dass es in Märkten zu Pareto-Effizienz kommt • NPÖ/Public Choice fragt, ob Anreize im politischen Prozess zu gleichen = effizienten Ergebnissen führen • Politischer Prozess als politischer Markt • Neben Markt- gibt es auch Staatsversagen 2 Prof. Dr. Thomas Wein, WIPO Kapitel 4 "Ökonomische Theorie der Politik"

4. 2 Voters 4. 2. 1 Voting Paradoxon —Rational voters will not vote —Downs

4. 2 Voters 4. 2. 1 Voting Paradoxon —Rational voters will not vote —Downs (1957): Net expected utility? Anthony Downs, * 1930 —In case of national elections: Own vote probably has no influence on election VL WIPO, Prof. Dr. Thomas Wein WS 16/17 3

4. 2 Voters 4. 2. 1 Voting Paradoxon —Rational voters will not vote —Participation

4. 2 Voters 4. 2. 1 Voting Paradoxon —Rational voters will not vote —Participation in elections – civic duty? —Participation as an expressiv action? VL WIPO, Prof. Dr. Thomas Wein WS 16/17 4

4. 2. 2 Inconsistent Collective Decisions Individuals elect according their own objectives Arrows (1963)

4. 2. 2 Inconsistent Collective Decisions Individuals elect according their own objectives Arrows (1963) has shown that collective order may exist: - collective rational (transitivity) - weak Pareto-priniple - Independeny from non-relevant alternatives - Non-dictatorship - Non exclusion of preferences Kenneth Arrow, *1923 Nobel laureate 1972 => Arrow´s Impossibility Theorem VL WIPO, Prof. Dr. Thomas Wein 5

4. 2. 2 Inconsistent Collective Decisions Simple Majority Rule (50 % +1 Votes) Table

4. 2. 2 Inconsistent Collective Decisions Simple Majority Rule (50 % +1 Votes) Table 14. 2 Majority voting: cyclical (Cullis/Jones 2009, S. 491) VL WIPO, Prof. Dr. Thomas Wein 6

4. 2. 2 Inconsistent Collective Decisions Simple Majority Rule (50 % +1 Votes) Table

4. 2. 2 Inconsistent Collective Decisions Simple Majority Rule (50 % +1 Votes) Table 14. 3 Outcome dependency on agenda setting (Cullis/Jones 2009, S. 491) Intransitivity might be relevant, but must not be; Outcome depends on voting sequences VL WIPO, Prof. Dr. Thomas Wein 7

4. 2. 2 Inconsistent Collective Decisions Non-cyclical preference Table 14. 4 Majority voting: non-cyclical

4. 2. 2 Inconsistent Collective Decisions Non-cyclical preference Table 14. 4 Majority voting: non-cyclical (Cullis/Jones 2009, S. 492) VL WIPO, Prof. Dr. Thomas Wein 8

4. 2. 2 Inconsistent Collective Decisions Figure 14. 2 Preferences and outcomes (Cullis/Jones 2009,

4. 2. 2 Inconsistent Collective Decisions Figure 14. 2 Preferences and outcomes (Cullis/Jones 2009, S. 493) VL WIPO, Prof. Dr. Thomas Wein 9

4. 3 Politicians 4. 3. 1 Median Voter decides Number of Voters Left VL

4. 3 Politicians 4. 3. 1 Median Voter decides Number of Voters Left VL WIPO, Prof. Dr. Thomas Wein Right WS 16/17 10

4. 3 Politicians 4. 3. 2 Logrolling — Welfare Maximizing VL WIPO, Prof. Dr.

4. 3 Politicians 4. 3. 2 Logrolling — Welfare Maximizing VL WIPO, Prof. Dr. Thomas Wein WS 16/17 11

4. 3 Politicians 4. 3. 2 Logrolling — Welfare Reduzing Voter Project Melanie Rhett

4. 3 Politicians 4. 3. 2 Logrolling — Welfare Reduzing Voter Project Melanie Rhett Scarlet Hospital 200 -110 -105 Total Net Benefits -15 Library -40 150 -120 -10 Pool -270 -140 400 -10 VL WIPO, Prof. Dr. Thomas Wein WS 16/17 12

4. 3 Politicians 4. 3. 2 Logrolling — Welfare Maximizing VL WIPO, Prof. Dr.

4. 3 Politicians 4. 3. 2 Logrolling — Welfare Maximizing VL WIPO, Prof. Dr. Thomas Wein WS 16/17 13

4. 4 Interest Groups 4. 4. 1 Group Interest as a Collective Good Mancur

4. 4 Interest Groups 4. 4. 1 Group Interest as a Collective Good Mancur Olson 1965 (1932 -1998) Table 14. 5 Contribution to lobbying: the large number situation VL WIPO, Prof. Dr. Thomas Wein WS 16/17 14

2. 3. 4 Interest Groups 2. 3. 4. 1 Group Interest as a Collective

2. 3. 4 Interest Groups 2. 3. 4. 1 Group Interest as a Collective Good Table 14. 5 Contribution to lobbying: the large number situation (Cullis/Jones 2009, S. 495) VL WIPO, Prof. Dr. Thomas Wein WS 16/17 15

2. 3. 4 Interest Groups 2. 3. 4. 2 Rent Seeking Robert D. Tollison

2. 3. 4 Interest Groups 2. 3. 4. 2 Rent Seeking Robert D. Tollison *1942, 1998 + Gordon Tullock Figure 14. 3 The social costs of monopoly (Cullis/Jones 2009, S. 496 VL WIPO, Prof. Dr. Thomas Wein WS 16/17 16

4. 4 Interest Groups 4. 4. 2 Rent Seeking VL WIPO, Prof. Dr. Thomas

4. 4 Interest Groups 4. 4. 2 Rent Seeking VL WIPO, Prof. Dr. Thomas Wein WS 16/17 17

4. 4 Interest Groups 4. 4. 2 Rent Seeking Figure 14. 4 Rent-Seeking: Producers

4. 4 Interest Groups 4. 4. 2 Rent Seeking Figure 14. 4 Rent-Seeking: Producers versus Consumers (Cullis/Jones 2009, S. 498) VL WIPO, Prof. Dr. Thomas Wein WS 16/17 18

4. 4 Interest Groups 4. 4. 2 Rent Seeking Table 14. 7 Estimates of

4. 4 Interest Groups 4. 4. 2 Rent Seeking Table 14. 7 Estimates of rent-seeking costs (Cullis/Jones 2009, S. 502) VL WIPO, Prof. Dr. Thomas Wein WS 16/17 19

4. 4 Interest Groups 4. 4. 3 Regulation as an Instrument of Vote Maximizing

4. 4 Interest Groups 4. 4. 3 Regulation as an Instrument of Vote Maximizing George Stigler 1911 -1991 Nobel Laureate 1982 Figure 14. 7 Stigler’s analysis of regulation (Cullis/Jones 2009, S. 503) VL WIPO, Prof. Dr. Thomas Wein WS 16/17 20

4. 4 Interest Groups 4. 4. 3 Regulation as an Instrument of Vote Maximizing

4. 4 Interest Groups 4. 4. 3 Regulation as an Instrument of Vote Maximizing Samuel Pelzman *1940, 1976 VL WIPO, Prof. Dr. Thomas Wein WS 16/17 21

4. 4 Interest Groups 4. 4. 3 Regulation as an Instrument of Vote Maximizing

4. 4 Interest Groups 4. 4. 3 Regulation as an Instrument of Vote Maximizing Figure 14. 8 Regulation to vote-maximis (Cullis/Jones 2009, S. 505) VL WIPO, Prof. Dr. Thomas Wein WS 16/17 22

4. 4 Interest Groups 4. 4. 5 Regulierung als Wettbewerb zweier Interessengruppen Gary S.

4. 4 Interest Groups 4. 4. 5 Regulierung als Wettbewerb zweier Interessengruppen Gary S. Becker (1930 -2014, 2008) Nobelpreis 1992 VL WIPO, Prof. Dr. Thomas Wein WS 16/17 23

4. 5 Bureaucrats Max Weber, 1864 -1920 VL WIPO, Prof. Dr. Thomas Wein WS

4. 5 Bureaucrats Max Weber, 1864 -1920 VL WIPO, Prof. Dr. Thomas Wein WS 16/17 24

4. 5 Bureaucrats William A. Niskanen 1933 -2011 1971 Figure 14. 11 Bureaucratic waste

4. 5 Bureaucrats William A. Niskanen 1933 -2011 1971 Figure 14. 11 Bureaucratic waste (Cullis/Jones 2009, S. 511 VL WIPO, Prof. Dr. Thomas Wein WS 16/17 25

Literature. —Cullis, John /Jones, Philip (2009), Microeconomics - a journey through life's decisions Harlow

Literature. —Cullis, John /Jones, Philip (2009), Microeconomics - a journey through life's decisions Harlow et al. (Prentice Hall), chapter 13. —Erlei, M. /Leschke, M. / Sauerland, D (2007): Neue Institutionenökonomik, Stuttgart (Poeschel), S. 354 -357. —Gruber, J. (2004). Public finance and public policy. Macmillan. —Rosen, H. R. /Gayer, T. (2013). Public Finance. Mc. Graw-Hill Higher Education, S. 33 -45, 106 -118, 263 -274. —Nicholson, W. /Snyder, W. /Luke, P. /Wood, M. (2008), Intermediate Microeconomics, London (Cengage Learning), S. 349 -361. VL WIPO, Prof. Dr. Thomas Wein WS 16/17 26