The social choice theory offers models of decisions, which are relevant for the public administration. For, the decision is a part of the policy cycle. Notably the social choice theory studies the formation of coalitions. The coalition game can have stable outcomes, which are in the core. It is conceivable, that the actors in the coaliton can transfer utility. Often the actors will exchange votes (logrolling). The Shapley value is a way to integrate morals in the social choice theory. Finally the applicability of the social choice theory will be discussed .... Read more
05-05-2022: The new public management
Author: E.A. Bakkum
Until now the Gazette has not presented a satisfactory connection between the actual description of public management and the various administrative theories. The present column wants to fill this lacuna by presenting two models of the administration, namely the bureaucracy and the new public management (NPM). It turns out that the NPM can solve several deficits of the bureaucracy. Therefore it has become more popular since 1980, and nowadays its instruments are frequently applied in practice .... Read more
06-04-2022: Health care and the size of the state
Author: E.A. Bakkum
The problem of the structure of health care is described, notably the adverse selection and the moral hazard. Next the optimal size of the state budget is studied. Empirical time series of the state ratio are presented. Various factors increase the ratio. The law of Wagner and the Baumol effect are explained. It is also explained, that various social groups are rent-seeking. This is true for citizens, politicians and the state bureaucracy .... Read more
03-03-2022: Annotations concerning social morals according to Binmore
Author: E.A. Bakkum
This column elaborates on the model, which Binmore uses to describe social morals. The source of empathy is traced back to primitive tribes. It is explained how Binmore attaches value to individuals. It turns out that the individual utility options have an effect on the chosen utility distribution. The theory of morals of Coleman is also explained, and compared in a calculation with the model of Binmore. Finally the various specific aspects of the models are separately addressed, such as the status quo and consensus .... Read more
10-02-2022: Distributing according to Nash
Author: E.A. Bakkum
The present column gives a detailed explanation of the axiomatic model of John Nash for the analysis of bargaining. Both the symmetric and the general variant are discussed. The model of Nash is associated with the model of Rubinstein for a negotiation with time pressure, with utilitarianism, and with the proportional method. It is shown, that from this Binmore derives a model of social morals. Finally the models are compared with experiences from practice .... Read more