Nostalgia…
Here is another interesting quotation from the stuff I am reading these days:
"William Niskanen (1971) made the simple assumption that bureau chiefs seek to maximize the budgets made available to them by legislatures. Budgets were, after all, both the symbol and measure of bureaucratic success, as well as the source of bureaucratic comfort and ease. Using its monopoly position, a bureau will attain a budget which oversupplies the bureau's output to the point at which consumer surplus is matched by the inefficiency of oversupply."
Reading that brought some memories from a certain 3-year period of my life…
"William Niskanen (1971) made the simple assumption that bureau chiefs seek to maximize the budgets made available to them by legislatures. Budgets were, after all, both the symbol and measure of bureaucratic success, as well as the source of bureaucratic comfort and ease. Using its monopoly position, a bureau will attain a budget which oversupplies the bureau's output to the point at which consumer surplus is matched by the inefficiency of oversupply."
Reading that brought some memories from a certain 3-year period of my life…
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Full citation of the article:
Miller, Gary J. 1997. “The Impact of Economics on Political Science.” Journal of Economic Literature 35 (3): 1173‑1204
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