Economics in a Policy Environment: Downs with Traction
10th Australian Society of Heterodox Economists Conference, 5-6 December, 2011
11 Pages Posted: 2 Feb 2012
There are 2 versions of this paper
An Economic Theory of Democracy Revisited - Downs with Traction
Date Written: December 5, 2011
Abstract
Economics is involved with policy, but economic theory has relatively little to say about the policy making process. One exception is the work of Anthony Downs in An Economic Theory of Democracy. He assumed no false information, and no irrationality. Neither of these assumptions is realistic in politics. Adam Smith recognized the role of rhetoric (deliberative eloquence) in political debate, and the significance of propaganda was recognized in the 1940s. Modern approaches to political processes, agenda setting, and discourse analysis also emphasize persuasion, with framing being an important active or passive factor in this process. This paper relaxes Downs' assumptions, considering the effects of rhetoric in policy debate, and the importance of “traction” on political agendas. Alternative propositions are suggested. In particular, policy issues will only be addressed spasmodically, few options will get attention, and there is likely to be poor monitoring. The implications for economists' approaches to policy are then considered.
Keywords: Downs, traction, rhetoric, democracy
JEL Classification: A12, D72
Suggested Citation: Suggested Citation