The Institutional Foundations of Public Policy: A Transactions Approach with Application to Argentina

Posted: 19 Jun 2003

See all articles by Pablo T. Spiller

Pablo T. Spiller

University of California, Berkeley - Business & Public Policy Group

Mariano Tommasi

Universidad de San Andres - Department of Economics

Abstract

Public policies are the outcomes of complex intertemporal exchanges among politicians. The political institutions of a country constitute the framework within which these transactions are accomplished. We develop a transactions theory to understand the ways in which political institutions affect the transactions that political actors are able to undertake, and hence the quality of the policies that emerge. We argue that Argentina is a case in which the functioning of political institutions has inhibited the capacity to undertake efficient intertemporal political exchanges. We use positive political theory and transaction cost economics to explain the workings of Argentine political institutions and to show how their operation gives rise to low-quality policies.

Suggested Citation

Spiller, Pablo T. and Tommasi, Mariano, The Institutional Foundations of Public Policy: A Transactions Approach with Application to Argentina. The Journal of Law, Economics, and Organization, Vol. 19, No. 2, pp. 281-306, 2003, Available at SSRN: https://ssrn.com/abstract=405320

Pablo T. Spiller (Contact Author)

University of California, Berkeley - Business & Public Policy Group ( email )

545 Student Services Building
Berkeley, CA 94720
United States
510-642-1502 (Phone)
510-642-2826 (Fax)

Mariano Tommasi

Universidad de San Andres - Department of Economics ( email )

Vito Dumas 284
Victoria, Buenos Aires B1644BID
Argentina
+5411-4725-7020 (Phone)

HOME PAGE: http://faculty.udesa.edu.ar/tommasi/index.htm

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