Topic 2_Policy and Special Interests

Topic 2_Policy and Special Interests - Topic 2: Public...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Topic 2: Public Policy Formation and Special Interests REQUIRED READINGS: “The Power of Organized Interests” and “Farming Pharmaceuticals: Ventria Bioscience and the Controversy over Plant-Made Medicines” Online Farming Pharma Case Discussion: 1/30—2/1 In-class Farming Pharma Case Debriefing: 2/2
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Voters are assumed to be rationally ignorant. It is costly for you to become informed on most political issues. It is not likely that your individual vote will make a difference. Politicians (elected officials) are assumed to be vote- maximizers. Regardless of their ultimate motivation, the ability of politicians to achieve their goals depends on their election or re-election. Thus, Politicians try to provide information about themselves (and their rivals) at no charge to voters. Bureaucrats (civil servants) are assumed to be budget- maximizers. Bureaucrats are not elected, but are hired into office much like what occurs in the private sector. Bureaucrats seek promotions, higher pay, prestige, job security, etc…,which all become more possible with a bigger budget. The Office Surplus: http://www.hulu.com/watch/49199/hulu-ad-experience-the-surplus Public Sector Participants
Background image of page 2
Possible Public Sector Inefficiency There are four possible types of inefficiencies in the public sector: The Shortsightedness Effect. Lack of Operational Efficiency. Lobbying/Rent Seeking. The Special Interest Effect.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Politicians support projects that have: Clearly defined current benefits, and future costs that are difficult to identify. Maximized influence on current voters, at
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/31/2011 for the course ECON 101 taught by Professor Brentkreider during the Spring '07 term at Iowa State.

Page1 / 13

Topic 2_Policy and Special Interests - Topic 2: Public...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online