ECO 481: Public Choice Theory

1
ECO 481Public Choice Theory
Dr. Dennis Foster 523-8178, FCB 308 Office Hours
Wed 100 pm - 500 pm and by appointment.

• Week 1 Introduction to Public Choice

2
What is it all about?

• New theory.
• Are public actors different than private ones?
• Voterconsumer and politicianbusinessman
• Even where we agree about private sector, govt
  is involved.
• Toy regulation on Stosselhttp//www.youtube.com/
  watch?v-r3aMsXPmXQ)
• Does government solve all our problems? Does it
  solve any? Too late, too much, too long.
• Welfare economists focus on market failure.
• Theyre looking for flaws in a perfect system!

3

• Can government deliver on promises?
• Health care? Jobs? Global warming?
• Are fiscal improvements not only thinkable but
  even fashionable and, perhaps, politically
  expedient?
• Public choice as a theory of government failure.
• Some observations
• Government isnt the default for fixing
  problems.
• Market alternatives getting more serious
  attention.
• Decentralization competition viewed more
  favorably.

• Review reading list for weeks 1 and 2.

4
ECO 481Public Choice Theory
Dr. Dennis Foster 523-8178, FCB 308 Office Hours
Wed 100 pm - 500 pm and by appointment.

• Week 1 Introduction to Public Choice