The Myth of Democratic Failure

This text refutes one of the beliefs of economics and political science: that economic markets are more efficient than the processes and institutions of democratic government. The author first considers the characteristics of efficient markets and explains how they operate in democratic politics. He then analyzes how specific political institutions are organized to operate efficiently. "Markets" such as the the Congress in the United States, bureaucracies and pressure groups, he demonstrates, contribute to efficient political outcomes. He also provides a theory of institutional design to explain how these political "markets" arise. Finally, Wittman addresses the methodological shortcomings of analyses of political market failure and offers his own suggestions for a more effective research strategy.