The conventional view of government’s role in market economy is that, the government tries to maximize and make the most efficient of social welfare. This is an exogenous part in correcting market failures and at the same time, its role in providing institutions and regulatory framework at once.
A Rule has to be Followed
In order to get this done, political rules required for critical decision-making including economic rules similar to those who are concerned about property rights and rules for its contracts allowing exchanges to take over. On the other hand, there are several other theories that have been put forth trying to explain and figure out how economic and political decisions are made.
With these new theories, the government isn’t to be seen as a single unit or entity.
Rather, it needs to be viewed as a collective form of institutional and legislative group.
Every political party has its own responsibility and objective which is further discussed in https://aeonreviews.com/.
Such theories can help people to better understand why policies are put in place and why others are more desired from economic point-of-view and not attractive among policymakers. Among the primary models is the rational choice model. This is based on the concept that individuals who are involved in the entire decision-making process rationally act and try to attain their objectives and compete with each other.
Systems Applied in Political Decisions
On the one end of the spectrum is referred to as system model. This is treating the entire social system as basic unit for analysis and it is concerned to how the component parts of system are responding to constraints and limitations of the system.
Between systems model as well as rational choice lies institutions model. Here, it gives more emphasis on institutions that are followed by the society and at the same time, the overall influence of groups that pursue environmental objectives. The institutions in society are affecting which policies would be made and implemented.
Then again, there’s the rational choice model and it sees how it could be implemented to environmental policy. In an effort to do this, we start by creating a list of groups who will or are affected by or have interests in decisions for environmental policy.