James McGill Buchanan
James McGill Buchanan was born on October 3, 1919 in Murfreesboro in Tennessee, USA.
In 1941 he completed his Master’s from the University of Tennessee. In 1948 he recieved his Ph.D. from the University of Chicago. Period of WW2 he spent on the staff of U.S. Navy Admiral Chester W. Nimitz in Honolulu, Hawaii. There he met his future wife. After the war he focused on economics - he taught at variety of American universities and he focused on research.
He is the most influental leader of public choice theory, which for his research on political decision making in 1986 received Nobel Prize in Economic Sciences. The prize was awarded “for his development of the contractual and constitutional bases for the theroy of economic and political decision-making”.
Public choice theory is a direction of the economic theory which examines processes of group decision making - decision making carried out by the group or in its favor. The subject of public choice theory is a way of realization of collective decisions.
Buchanan throughout his life moves at the border of economics and politics and explores their mutual realions and influence. He proved that economic analysis can be applied to politicians’ behavior. He literally says: “Politicians do not act differently than other people, which are subjects of economics.”
Since that the policital decisions are the basis for the functioning of public sector, Buchanan’s contribution is essential for understanding decision making mechanims in this sector and public finance.
Related terms and methods:
- Public sector
- Public administration
Related management field:
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