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19 download_doc-4.php - G202 Topic2: REQUIREDREADINGS:...

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G202 (2/2/2009) Topic 2: Public Policy Formation and Special Interests REQUIRED READINGS:      “The Power of Organized Interests” and “The Safe  Food Act Case” Online Safe Food Case Discussion: Feb. 1 st —Feb. 3rd In-class Safe Food Case Debriefing: Feb. 4 th   Public Choice Analysis Public Choice Analysis      applies the tools of economics to study the public  sector. Individuals pursue their own self interests. Information is costly to obtain. Incentives matter for decision makers. There are four possible types of inefficiencies in the public sector: The Shortsightedness Effect. Lack of Operational Efficiency. Rent Seeking Behavior. The Special Interest Effect. Public Sector Participants 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.
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