Introduction to James M. Buchanan Jr.
Let me tell you about James M. Buchanan Jr., an American economist who won the Nobel Prize in economics in 1986 for his work on public choice theory, which applies economic principles to understand the actions of voters and public officials.
He wrote several important books, including What Should Economists Do?, The Limits of Liberty, and The Calculus of Consent co-authored with Gordon Tullock.
Buchanan passed away on January 9, 2013.
Key Takeaways
You need to know that James M. Buchanan Jr. was awarded the Nobel Prize in economics in 1986.
He developed public choice theory alongside economist Gordon Tullock.
His contributions led to the establishment of the Center for Study of Public Choice at George Mason University.
Early Life and Education
James M. Buchanan Jr. was born on October 3, 1919, in Murfreesboro, Tennessee.
He obtained a bachelor's degree from Middle Tennessee State College in 1940 and a Ph.D. from the University of Chicago in 1948.
From 1956 to 1968, he was a professor at the University of Virginia, where he founded the Thomas Jefferson Center for Studies in Political Economy.
He then taught at UCLA and Virginia Tech from 1968 to 1983, before joining George Mason University, where he retired with emeritus status.
Public Choice Theory
In 1962, Buchanan and Gordon Tullock wrote The Calculus of Consent, which lays out the core ideas of public choice theory and serves as a key reference in political science and economics.
This theory uses economics to examine political decision-making and challenges the assumption that politicians always prioritize their constituents' interests.
It looks at how incentives and personal benefits influence politicians' decisions.
Buchanan's perspective on human nature and politics helps explain the motivations of political actors and improves predictions of political outcomes.
In 1986, he received the Nobel Prize for his development of the contractual and constitutional foundations of economic and political decision-making.
The Center for Public Choice
The Center for Public Choice at George Mason University builds on Buchanan's Nobel Prize-winning theories in economics and political science.
As a research program, it uses economic tools to study the behavior of voters, candidates, legislators, bureaucrats, and judges.
Originally founded in 1957 at the University of Virginia as the Thomas Jefferson Center for Studies in Political Economy, it moved to Virginia Tech in 1969 and then to George Mason University in 1983, where it remains active today.
Influences and Related Concepts
Buchanan drew from various economic schools, including libertarianism and free-market thinking.
Public choice theory is related to social choice theory, both under public economics, but social choice theory uses a mathematical approach to aggregate individual interests and their impact on voter behavior.
Buchanan held leadership roles such as member of the Board of Advisors of the Independent Institute, member and former president of the Mont Pelerin Society, and Distinguished Senior Fellow of the Cato Institute.
The Bottom Line
James M. Buchanan Jr. pioneered public choice theory, which questions the idea that politicians act only for their constituents and shows that self-interest and incentives often drive civil servants and elected officials.
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