1. ECO 481: Public Choice Theory
Introduction to
Public Choice
Dr. Dennis Foster

2. What is it all about? “New theory.”
Are public “actors” different than private ones?
Voter=consumer and politician=businessman
The Ethics & Economics of Choosing Publicly:
Buchanan & Williams:
Reflections on Buchanan:
Simmons on Public Choice:

3. What is it all about?
Even where we agree about private sector, gov’t is involved.
Toy regulation on Stossel:
Does government solve all our problems? Does it solve any? “Too late, too much, too long.”
“Welfare economists” – focus on “market failure.”
They’re looking for flaws in a perfect system!
Can government deliver on promises?
Health care? Jobs? Global warming?

4. What is it all about? Public choice as a theory of government failure.
Are there signs that this is becoming more and more accepted in the political arena?
Is government the default for fixing “problems?”
Are “problems” really even problems? [e.g., income inequality]
Are market alternatives getting more serious attention?
Is decentralization & competition viewed more favorably?
Review reading list for weeks 1 and 2.

5. Voting – Curb Your Enthusiasm
Term paper/project theme:
Voting – Curb Your Enthusiasm
Basic principles – liberty & freedom
Operationalization – private property
Ultimate objective – all voluntary actions
Find a voting issue that violates our basic principles and leads to distorted and inefficient outcomes. Show how eliminating this vote will improve our well-being.

6. Voting – Curb Your Enthusiasm
Term paper/project theme:
Voting – Curb Your Enthusiasm
For example …
--College students should not vote in local elections.
--Nor should city employees (likewise, state & federal)
--Non-payers of property taxes should not vote to raise these taxes.
--School employees should not vote in school bond elections.
--Votes on minimum wages should not be allowed.
--Don’t allow votes where non-voters pay.
Look for specific votes (ballot propositions, by and large)
Some references:
statewide.html
Ref: Ch. 4 Pathological Politics

7. ECO 481: Public Choice Theory
Introduction to
Public Choice
Dr. Dennis Foster