This academic paper from the Quarterly Journal of Austrian Economics analyzes the economic theory of bureaucracy by comparing the perspectives of William Niskanen from the Public Choice School and Ludwig von Mises from the Austrian School. Carnis, the author, outlines the differing reasons these economists give for the existence of bureaucracy, with Niskanen pointing to market failures and Mises emphasizing government intervention. The article explores their contrasting views on the dynamics of bureaucratic expansion, Niskanen focusing on organizational factors and Mises on institutional ones tied to the impossibility of economic calculation. Ultimately, the paper highlights the irreconcilable differences in their proposed solutions for mitigating the disadvantages of bureaucracy, with Niskanen advocating for market-based incentives within the system and Mises calling for the fundamental reduction of government intervention and a restoration of free markets.
