From: http://www.businessweek.com/news ... conomist-dies-at-93
Sad news: Economist and Nobel
Laureate James M. Buchanan has died at age 93, as first reported by his
George Mason Univerysity colleague Tyler Cowen.
Bloomberg News
James Buchanan flashes a smile at a news conference
announcing he has won the Nobel Proze in economics at George Mason
University in Fairfax, Virginia, on Oct. 16, 1986. Photographer: Don
Emmert/AFP via Getty Images
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By Laurence Arnold on January 09, 2013
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James M. Buchanan, the U.S. economist who won the 1986
Nobel Prize for applying the principles of economic self-interest to
understand why politicians do what they do, has died. He was 93.
He died today, according to Alex Tabarrok, director of the Center for
Study of Public Choice at George Mason University in Fairfax, Virginia,
where Buchanan was a distinguished professor emeritus of economics. The
cause wasn’t immediately available.
The Royal Swedish Academy of Sciences awarded Buchanan the Nobel in
economics “for his development of the contractual and constitutional
bases for the theory of economic and political decision-making.”
Buchanan was a pioneer in the field known as public-choice theory, which
views government decisions through the personal interests of the
bureaucrats and elected leaders who want to advance in their careers and
win campaigns.
He summarized public choice as “politics without romance” and said it
helps explain why established bureaucracies “tend to grow apparently
without limit,” why pork-barrel politics endure and why the tax system
is defined by “the increasing number of special credits, exemptions and
loopholes.” At the time he received the award, his ideas were finding a
receptive audience within the administration of President Ronald Reagan.
Rethinking Politics “Buchanan’s
contribution is that he has transferred the concept of gain derived
from mutual exchange between individuals to the realm of political
decision-making,” the Nobel committee wrote. “According to Buchanan, it
is often futile to advise politicians or influence the outcome of
specific issues. In a given system of rules, the outcome is to a large
extent determined by established political constellations.”
As Buchanan put it in “Liberty, Market and the State” (1986), politics
is “a process within which individuals, with separate and potentially
differing interests and values, interact for the purpose of securing
individually valued benefits of cooperative effort.”
He drew on the work of Knut Wicksell, the Swedish economist who studied
to what degree different forms of parliamentary government spend money
in line with the wishes of taxpayers.
The choice of Buchanan for the Nobel drew some criticism, in part
because his area of study was a step away from traditional economics in
the direction of political science.
Surprised Honoree Buchanan
himself, writing in 1989, said he was surprised to be honored, “because
I held myself, my work, and my affiliation, to be too far outside the
mainstream both of my own discipline and the American academia.”
James McGill Buchanan was born on Oct. 3, 1919, in Murfreesboro,
Tennessee. His grandfather, John P. Buchanan, had been governor of
Tennessee from 1891 to 1893.
He earned his undergraduate degree from Middle Tennessee State
University in 1940 and his master’s from the University of Tennessee in
1941. During World War II he served in the U.S. Navy on the staff of
Admiral Chester Nimitz, commander of the Pacific fleet. He earned his
Ph.D. from the University of Chicago in 1948.
He taught at the University of Tennessee and Florida State University.
At the University of Virginia, where he taught from 1956 to 1968, he led
the economics department and helped found the Thomas Jefferson Center
for Studies in Political Economy, the research institute through which
he continued his work on public-choice theory.
Major Work His
best-known book, “The Calculus of Consent,” was published in 1962. He
collaborated on it with his research institute co-founder, Gordon
Tullock.
Among his students at Virginia was John Snow, who would become chairman
and chief executive officer of CSX Corp., an international freight
transportation company based in Jacksonville, Florida, and President
George W. Bush’s first Treasury secretary.
Buchanan moved to Virginia Polytechnic Institute in 1969 and became
director of a new Center for Study of Public Choice. He moved with the
research center to George Mason University in 1983.
Buchanan and his wife, the former Ann Bakke, married in 1945.
To contact the reporter on this story: Laurence Arnold in Washington at
larnold4@bloomberg.net
To contact the editor responsible for this story: Charles W. Stevens at
cstevens@bloomberg.net