1. ECO 481: Public Choice Theory Week 1 – Introduction to Public Choice Dr. Dennis Foster 523-8178, FCB #308 Office Hours –Wed: 1:00 pm - 5:00 pm; and by appointment.

2. What is it all about? “New theory.” Are public “actors” different than private ones? – Voter=consumer and politician=businessman Even where we agree about private sector, gov’t is involved. – Toy regulation on Stossel: http://www.youtube.com/watch?v=-r3aMsXPmXQ) http://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.” – They’re 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 isn’t 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 481: Public Choice Theory Week 1 – Introduction to Public Choice Dr. Dennis Foster 523-8178, FCB #308 Office Hours –Wed: 1:00 pm - 5:00 pm; and by appointment.