Two major policy innovations of the Thatcher governments are analysed—privatisation and poll tax. A public choice analysis is used to predict and explain why poll tax will be a less popular policy electorally than privatisation. The explanation focuses on the distribution of gains and losses between gainers and losers under the two policies. Two implications of the analysis are that future privatisation issues are likely to continue to be underpriced and that increased central grants will be used to reduce the average level of poll tax.
Get full access to this article
View all access options for this article.
References
1.
BarrowM, 1986, “Reforming local government finance”Public Money614
2.
BaumolWJ, 1967Welfare Economics and the Theory of the State (G Bell, London)
3.
BeesleyMLittlechildS, 1983, “Privatisation: Principles, problems and priorities”Lloyds Bank Review1491–20
4.
BennettRJ, 1986, “The impact of non-domestic rates on profitability and investment”Fiscal Studies734–50
5.
BramleyG, 1987, “Horizontal disparities and equalisation: A critique of ‘Paying for local government’”Local Government Studies1369–89
6.
BramleyGHamiltonGLe GrandJELowW, 1988, “Why the poll tax is not a community charge”Policy and Politics (forthcoming)
7.
BretonA, 1974The Economic Theory of Representative Government (Aldine, Chicago, IL)
8.
BrittanS, 1983The Role and Limits of Government (Maurice Temple Smith, London)
9.
BrittanS, 1984, “The politics and economics of privatisation”Political Quarterly55109–128
10.
BrittanS, 1986, “Privatisation: A comment on Kay and Thompson”Economic Journal9633–38
11.
BuchananJM, 1967Public Finance in Democratic Process (University of North Carolina Press, Chapel Hill, NC)
12.
BuchananJMTollisonRDTullockG, (Eds), 1980Towards a Theory of the Rent-seeking Society (Texas A and M University Press, College Station, TX)
13.
DavisJ, 1986, “Will Sid always fall for these cynical sell-offs?The Independent 25 November, page 16
14.
FosterCD, 1986, “Reforming local government finance”Public Money617–22
15.
FosterCDJackmanRAPerlmanM, 1980Local Government Finance in a Unitary State (Allen and Unwin, Hemel Hempstead, Herts)
16.
GibsonJG, 1987a, “The reform of British local government finance: The limits of local accountability”Policy and Politics15167–174
17.
GibsonJG, 1987b, “How the poll tax will punish electors”Public Service and Local Government1714–15
18.
GroutPA, 1987, “The wider share ownership programme”Fiscal Studies859–74
19.
HealdDA, 1984, “Privatisation: Analysing its appeal and limitations”Fiscal Studies536–46
20.
HC, 1987a, “Debate on the Address”House of Commons Parliamentary Debates official report—Session 1987–88 (Hansard) volume 118, columns 141 and 434 (HMSO, London)
21.
HC, 1987b, “Written answers”House of Commons Parliamentary Debates official report—Session 1987–88 (Hansard) volume 123, column 316w (HMSO, London)
22.
HC, 1987c, “Local Government Finance Bill”House of Commons Parliamentary Debates official report—Session 1987–88 (Hansard) volume 124, column 1282 (HMSO, London)
23.
HicksJR, 1939, “The foundations of welfare economics”Economic Journal49696–708
24.
JackmanRA, 1986, “Paying for local government”Local Government Studies1251–58
25.
JonesGWStewartJDTraversA, 1986, “A rejoinder to Jackman”Local Government Studies1259–62
26.
KaldorN, 1939, “Welfare propositions in economics”Economic Journal49549–552
27.
KayJAThompsonDJ, 1986, “Privatisation: A policy in search of a rationale”Economic Journal9618–32
28.
KingDN, 1984Fiscal Tiers (Allen and Unwin, Hemel Hempstead, Herts)
29.
McLeanI, 1982Dealing in Votes (Martin Robertson, Oxford)
30.
MayerCPMeadowcroftSA, 1985, “Selling public assets: Techniques and financial implications”Fiscal Studies642–56
31.
MieskowskiP, 1972, “The property tax: An excise tax or a profits tax”Journal of Public Economics173–96
32.
MitchellJMMitchellWC, 1969Political Analysis and Public Policy (Rand McNally, Chicago, IL)
33.
PrestAR, 1982, “On charging for local government services”The Three Bank Review number 133, pp 3–23
34.
ScitovskyT, 1941, “A note on welfare propositions in economics”Review of Economic Studies977–88
35.
Secretary of State for the Environment, 1986Paying for Local Government Cmnd 9741 (HMSO, London)
36.
StiglerG, 1966Theory of Price3rd edition (Macmillan, New York)
37.
TollisonR, 1982, “Rent seeking: A survey”Kyklos88575–601
38.
TullockG, 1983Welfare for the Well-to-doFisher Institute, Dallas, TX
39.
TullockG, 1984, “How to do well while doing good!”, in Neo-classical Political Economy Ed. ColanderDC, (Ballinger, Cambridge, MA) pp 229–240
40.
VeljanovskiC, 1987Selling the State (Weidenfeld and Nicolson, London)
41.
VickersJYarrowG, 1988Privatisation: An Economic Analysis (MIT Press, London)
