The Virginia school of political economy is a term applied to a school of economic thought originating in universities of Virginia and mainly focusing on public choice theory, constitutional economics, and law and economics. It emerged first at the Thomas Jefferson Center at the University of Virginia established by James M. Buchanan and G. Warren Nutter in 1957. It was there that Ronald Coase formulated his famous theorem on the problem of social cost (1960) and that Buchanan and Gordon Tullock wrote The Calculus of Consent: Logical Foundations of Constitutional Democracry (1962). In 1969, Buchanan, Tullock, and Charles J. Goetz established the Center for the Study of Public Choice at Virginia Tech, which moved with them to George Mason University in 1983. Other prominent scholars associated with the school include Dennis C. Mueller, Robert D. Tollison, Andrew B. Whinston, and Leland B. Yeager.
The Virginia approach to political economy focuses on comparing private and public sector institutions as imperfect alternatives. The Virginia approach is also favored by some economists of the Chicago and Austrian schools. Virginia School economists are often seen as 'fellow travelers' with Austrian economists, as members of both schools of economic thought generally favor free-market outcomes.
There are several main lines of research in the Virginia School. James Buchanan and Gordon Tullock were among the earliest economists to apply economic analysis to national constitutions. Tullock also founded the modern rent seeking literature. Mancur Olson founded modern research on collective action and special interest groups. Olson was not at GMU, Virginia, or Virginia Tech, but Virginia scholars tend to emphasize special interest group bias in government.
The Public Choice Society is an outgrowth of the Virginia School.
Famous quotes containing the words school, political and/or economy:
“And this school wasn’t keeping anymore,
Unless for penitents who took their seat
Upon its doorsteps as at mercy’s feet
To make up for a lack of meditation.”
—Robert Frost (1874–1963)
“Wherever the relevance of speech is at stake, matters become political by definition, for speech is what makes man a political being.”
—Hannah Arendt (1906–1975)
“I favor the policy of economy, not because I wish to save money, but because I wish to save people. The men and women of this country who toil are the ones who bear the cost of the Government. Every dollar that we carelessly waste means that their life will be so much the more meager. Every dollar that we prudently save means that their life will be so much the more abundant. Economy is idealism in its most practical terms.”
—Calvin Coolidge (1872–1933)