Lecture on Public Economics and Political Science

James M. Buchanan and "Politics Without Romance"

• James M. Buchanan is a notable American economist and Nobel Laureate.
• Known for the phrase "politics without romance."
• Emphasizes the need to consider the reality of political institutions and self-interest in economic analysis of government policies.

Economic Theory in Public Choice

• Public choice uses economic tools to address traditional political science problems (e.g., voting, governing, political outcomes).
• Economics can predict election outcomes and post-election actions.

The Median Voter Theorem

• In a two-party system, winning over the median voter is key to winning elections.
• The median voter stands in the middle of the political spectrum.
• Political spectrums typically range from left (liberal/progressive) to right (conservative).
• Candidates aim to align with median voter preferences to secure election victories.

Example of Application

• In a scenario with two candidates:
  • Orange Party candidate is closer to median voter preferences; wins majority.
  • Shift in candidate positions can affect voter alignment and outcomes.
  • Median voter has decisive power in two-candidate elections.

Voting Systems and Two-Party Dominance

• Most U.S. elections feature two major party candidates.
• Elections are often decided by majority vote, influenced by median voter preferences.
• Candidate appeal often targets swing voters in the middle of the spectrum.

The Hotelling Model

• Suggests minimal product differentiation as firms (or parties) vie for market share.
• Applies to political parties trying to capture voter majorities.
• Recent trends show increasing polarization and differentiation between parties.

Two-Party System and Strategic Voting

• Winner-take-all system limits third-party success.
• Strategic voting leads many to vote for major party candidates over third parties.
• Majority party candidates often centrist to appeal to the median voter.

Political Primaries and Polarization

• Primaries allow voters, not insiders, to choose party candidates.
• Median voters within parties tend to be more ideologically extreme.
• Primaries contribute to increased political polarization.

Proportional Representation as an Alternative

• Proportional representation awards seats based on vote share.
• Could lead to more diverse party representation but requires constitutional changes in the U.S.

Conclusion

• Current systems and theories provide insight into election dynamics and candidate positioning.
• Understanding these concepts helps explain political behaviors and outcomes.