This module examines non-market decision-making, in particular of political decision-making from an economist's perspective. The module uses the 'rational choice' perspective to understand the process of economic and political decision-making in a democracy and to study some particular issues in developed and developing countries. The approach combines the study of advanced theoretical background with examples and critical evaluations of existing policies. For instance, 'rational choice' perspective is used to study problems of government resource allocation. Other examples include: government health and education policies, economics of crime and conflict.