The Wayback Machine - https://web.archive.org/web/20130501003422/http://www.econlib.org/library/CEE.html
The Concise Encyclopedia of Economics
FEATURED TOPIC

Public Choice

William F. Shughart II
Public choice applies the theories and methods of economics to the analysis of political behavior, an area that was once the exclusive province of political scientists and sociologists. Public choice originated as a distinctive field of specialization a half century ago in the works of its founding fathers, Kenneth Arrow, Duncan Black, James Buchanan, Gordon Tullock, Anthony Downs, William Niskanen, Mancur Olson, and William Riker. Public choice has revolutionized the study of democratic decision-making processes...
As James Buchanan artfully defined it, public choice is "politics without romance." The wishful thinking it displaced presumes that participants in the political sphere aspire to promote the common good. In the conventional "public interest" view, public officials are portrayed as benevolent "public servants" who faithfully carry out the "will of the people." In tending to the public's business, voters, politicians, and policymakers are supposed somehow to rise above their own parochial concerns.... MORE
ALSO OF INTEREST

Property Rights

Armen Alchian

Armen Alchian

Biography

James J. Buchanan

Biography

Hoover's Economic Policies

Steven Horwitz

Health Care

Michael A. Morrisey

Political Behavior

Richard L. Stroup

Federal Debt

Robert Eisner

Return to top
FEATURED BIOGRAPHY

James J. Heckman

(1944- )
In 2000, James Heckman, along with Daniel McFadden, received the Nobel Prize in economics. Heckman won the prize for "his development of theory and methods for analyzing selective samples," highly technical work that it is difficult to explain to the layman. Nevertheless, the work rewarded by the Nobel committee has been valuable for economists' studies of many issues that laymen do care about. The main technical problem on which Heckman has spent much of his professional life involves self-selection. An economist who wants to know, for example, how male workers will respond to a higher wage rate can take microdata on wages and hours worked and find a relationship. This approach has a problem that economists have long recognized: some men will not work at all and, therefore, will not be in the data set. And, presumably, these men who do not work will be disproportionately from the group that, had they worked, would have earned low wages. They have "self-selected" out of the workforce. So the economist's estimates on the effect of wages on hours worked will be biased. How is the economist to deal with this fact if he wants to generalize from his sample to the male population in general?... MORE
Morty Proxy This is a proxified and sanitized view of the page, visit original site.