Government and North Sea Oil by Danny Hann

By Danny Hann

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Tullock9 maintains that in virtually all real-world voting situations implicit logrolling takes place, and while this may have beneficial results it can also have defects. Tullock clearly illustrates the benefits of 10grolling lO by using a simple example. 1 on each member of the society, and each individual will benefit exclusively from the policies. If one policy costs ;(20 to implement and only one individual accrues a be ne fit worth i35 the bill, without logrolling, would be defeated by 19 votes to 1, although it is preferable for the bill to be passed.

For example, the röle of the opposition party in Britain is not straightforward because, except at election times, the competition between the incumbent party and the opposition is limited. In the absence of effective competition the governing party will not do everything it can to satisfy the preferences of citizens as weak competition implies a low probability of defeat. A technical constraint (in addition to the physical constraints imposed by the production technology governing the combination of factors of production) on the maximisation of this utility function is the extent to which government coercion pushes individuals into political participation.

0/ Political Economy, February than the marginal benefit from its use, then the outcome is consistent with Niskanen's model and the bureau captures the consumersurplus. The potential effectiveness of control devices depends on the source of inefficiency within the bureau. To eliminate the oversupply of output the sponsor needs to acquire information about the bureau's actual cost curve. If the inefficiency results from X-inefficiency the sponsor must have the information about the bureau's cost curve, plus an estimate of the true minimum cost of supplying the service which is thus a more costly operation.

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