Since about a year the Gazette studies models of the public administration. They can bridge the gap between theories from economics and the political science. Recently policy analysis has developed the actor-centred institutionalism, which indeed combines the best of these two worlds. Rational behaviour is restricted by the institutions. Besides, the form of action is taken into account. It turns out that policies can be described well by methods from the social choice theory. Notably game theory and the Hicks-Kaldor compensation principle provide insights in policies .... Read more
15-05-2022: Social choice theories of decisions
Author: E.A. Bakkum
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