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

See all articles by K. Stuart Birks

K. Stuart Birks

Massey University - Massey Business School

Multiple version iconThere are 2 versions of this paper

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

Birks, K. Stuart, Economics in a Policy Environment: Downs with Traction (December 5, 2011). 10th Australian Society of Heterodox Economists Conference, 5-6 December, 2011, Available at SSRN: https://ssrn.com/abstract=1996885

K. Stuart Birks (Contact Author)

Massey University - Massey Business School ( email )

New Zealand

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