Reconciling normative and positive theories of government
Article Abstract:
The rethinking of the government's role should include consideration for both the traditional normative theory of government and the positive models of public choice. Positive models of public choice indicate that the government frequently prompts market failure by responding to pressure groups. Such activity can be checked by an analytical framework provided by the normative theories of government. A framework for the evaluation and design of public policies thus involves a theoretical model of government activities and an empirical tool for measuring the impact of such activities.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1997
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Recent theoretical work on the soft budget constraint
Article Abstract:
A study was conducted to examine theoretical analyses undertaken on the soft budget constraint, a syndrome said to arise when a seemingly unprofitable enterprise is bailed out by the government or the enterprise's creditors. The premise that the devolution of fiscal authority from central to local government works against soft budget constraint was examined. Moreover, the impact of the stock market on firms to be bailed out was discussed.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1999
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Changing incentives of the Chinese bureaucracy
Article Abstract:
An analysis of economic and political reform in China reveals that the economic development being experienced by the country is a result of a major transformation in the bureaucracy rather than political liberalization. The study also shows that the results may not extend to other transition economies as China is unique in the case that the bureaucracy has been weakened considerably before the onset of reform.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1998
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- Abstracts: Flat tax reform: a quantitative exploration. On the role of government in a stochastically growing open economy
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- Abstracts: Policy performance and output growth in the transition economies