Questions what is the main features of the socialist economy?

Public Choice Theory?

Key words: public sector actors, "politics without romance", human nature

Public choice, or public choice theory, is "the use of economic tools to deal with traditional problems of political science". Its content includes the study of political behavior. In political science, it is the subset of positive political theory that studies self-interested agents (voters, politicians, bureaucrats) and their interactions, which can be represented in a number of ways – using (for example) standard constrained utility maximization, game theory, or decision theory.

Public choice analysis has roots in positive analysis ("what is") but is often used for normative purposes ("what ought to be") in order to identify a problem or to suggest improvements to constitutional rules. Essentially, private sector actors determine whether urban areas develop in sustainable ways, influence poverty reduction and drive conflicts like unemployment, instability and exclusion.

Public choice is the economic analysis of nonmarket decision making or in more simple words is the application of economic methods to political science. Main topics of the public choice are identical with political science: the theory of the state, voting rules, voting behavior, party politics, bureaucracy etc. The methodology of public choice is the methodology of economics. The behavioral assumptions of public choice, akin to economics, are that individuals are selfish, rational and maximize the benefits. Public choice theory demonstrates why looking to government to fix things can often lead to more harm than good. Public choice should be understood as a research program rather than a discipline or even a sub-discipline of economics.

Human nature is a concept that denotes the fundamental dispositions and characteristics including ways of thinking, feeling and acting that humans are said to have naturally. The term is often used to denote the essence of humankind, or what it ‘means’ to be human.

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