By Horst Hanusch (auth.), Prof. Dr. Horst Hanusch (eds.)
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Additional resources for Anatomy of Government Deficiencies: Proceedings of a Conference held at Diessen, Germany July 22–25, 1980
The Relevant Domain of Homo Economicus I suggest that we cease and desist in any attempts to model man, either in his market or in his public-choice behavior, as seeking exclusively or even predominantly to maximize the value of his net wealth. I suggest that we restrict ourselves methodologically to the more limited model of homo economicus, one that allows the argument for economic value to enter into the individual utility function, in market or in public choice behavior, but to enter as only one among several arguments, and not necessarily as the critical influencing factor in many cases.
On the other hand, the proiJovernment view represented by Galbraith and AOU, is based on an idealized model of an informed, efficient, and humane government, able to identify and remedy failures of the market and achieve national goals formulated by democratic means, in accord with the precepts of welfare economics and the theory of economic planning developed by Lange and Lerner. This view draws empirical support from the generally favorable economic performance of the Scandinavian countries and the Netherlands, as well as such specific instances of efficient performance as Europe's government-operated railways.
Conversely, we should expect greater initiative and receptivity from the Senate than the House with respect to legislation associated with moderate current costs and large future benefits. For example, the contrasting record of the Senate and the House regarding defense appropriations and nuclear waste legislation would seem to be consistent with this predicted pattern. 32 Charles Wolf, Jr. some non-market output, as a response to an originally perceived market inadequacy or failure. The equal opportunity and model cities programs of the 1960s in the United States, and the decision in the early 1970s to emphasize "targeted" cancer research, are examples.
Anatomy of Government Deficiencies: Proceedings of a Conference held at Diessen, Germany July 22–25, 1980 by Horst Hanusch (auth.), Prof. Dr. Horst Hanusch (eds.)