ABSTRACT
In the 1950s, policymakers in the developed countries became interested in the alleviation of poverty in the developing countries. A primary research area in public choice is the analysis of the legislative process. Public choice theory treats legislatures as markets that supply policies demanded by voters in their capacity as consumers, producers, or members of special interest groups. Choices in collective settings are made through the voting process. Voters elect representatives who specialize in legislative matters. The interest-group theory of government has become a core area of research in public choice. An issue of interest to public choice theory concerns the ‘correct’ size of government. Public choice views political parties as basically interested in winning elections. One powerful outcome of political party competition is the median voter outcome. Developing countries are characterized by heavy government intervention in markets which explains the dismal economic performance of these countries.
