ECONOMY

stanley l. winer & walter hettich 445
Private and public property rights
Behavioral assumptions about individual agents
Market equilibrium
Collective choice
Assumed electoral and legislative institutions
Private goods and
services; goods with
externalities
Separation of spending
and taxing
Incentive problems, free riding
Coercion
and rent-seeking
Special interests, problems
of agent control
Equilibrium use of policy instruments
Public goods and services; goods with externalities
Regulation, law, and use of other policy instruments
Normative reasoning
Welfare consequences of decision externalities
Excess burdens of taxation
Cost−benefit analysis and program evaluation
Fig. 25.1 The basic structure of public sector political economy
Voluntary
redistribution