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THEORY FORMATION IN POLITICAL SCIENCE HAS HEADED TOWARD A "NEW POLITICAL ECONOMY" WITHIN WHICH 4 CLUSTERS ARE DISTINGUISHED: (1) 'SPATIAL MODELS OF PARTY COMPETITION', (2) THEORIES OF COLLECTIVE ACTION, (3) THEORIES OF ALLOCATION OF VALUES, UNDER SPECIFIC ASSUMPTIONS OF THE DISTRIBUTION OF POWER, IE COALITION THEORIES, BARGAINING THEORIES & REINTERPRETATIONS OF DUOPOLY THEORIES, & (4) THEORIES OF ADMINISTRATIVE BEHAVIOR. THE 4 CLUSTERS ARE THE RESULT OF THE INTEGRATION OF POLITICAL SCIENCE & ECONOMICS. THE SIMILARITY IN THEORETICAL STRUCTURE OF THE 4 CATEGORIES IN POLITICAL SCIENCE WITH THE CORRESPONDING THEORIES IN MICROECONOMICS, WELFARE ECONOMICS, & PUBLIC ECONOMICS CONSISTS OF THESE ELEMENTS: (A) THE PREPONDERANCE OF A DEDUCTIVE (VS INDUCTIVE) STRATEGY OF THEORY BUILDING, (B) THE 2 PREMISES OF INDIVIDUALISM & GOAL-ORIENTED BEHAVIOR, (C) PREOCCUPATION WITH VARIOUS CORRESPONDING AMENDMENTS ON ASSUMPTIONS IN THE ECONOMIC THEORY OF PERFECT COMPETITION, & (D) THE THEORY OF ADMINISTRATIVE BEHAVIOR AS BASED ON THE AMENDMENT OF THE ASSUMPTION OF PERFECT & COSTLESS INFORMATION & THE HOLISTIC ('UNITARY ACTOR') OF DECISION-MAKING IN THE THEORY OF THE FIRM. MODIFIED HA.

Problems concerning the subsidization of pol'al parties are discussed. 1st the situation in countries other than the Netherlands is considered. Public funds are used for direct support of pol'al parties in Argentina, Germany, Israel, Turkey & Sweden. Indirect support (tax facilities, air time, etc) is given in many more countries. Arguments against subsidization are: (1) it makes parties dependent on the gov; (2) it freezes the pol'al pattern; & (3) it is contrary to the private character of pol'al parties. The form of subsidization is seen to be an important consideration: a form must be sought which guarantees equality of opportunity between the parties. There are no principle objections to subsidization, however, direct support is rejected for the present because it is difficult to find a system of allocation which is perfect & equitable from all points of view, & because subsidization would serve to increase the psychol'al distance between the parties & the electorate. If subvention is desired, the best system is seen to be one in which allocation depends on the amount contributed by the party members & the number of seats in parliament. This amount would be limited, & the subsidization regulated by law. The parties would be obliged to publish their income & expenditures. Modified HA.