PSCI 2401 Lecture Notes - Lecture 1: Ronald Coase, Coase Theorem, Public Choice
4 Apr 2016
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Document Summary
The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Marxism and policy: division of society into unequal classes, false consciousness, the state is the executive committee of the bourgeoisie . Public policy: whatever governments choose to do, or choose not to do . Public interest theory: policy should increase collective national welfare , policy action directed towards market failures, technocratic. Intellectual founders: arthur pigou, john maynard keynes, jean tirole, paul. Krugman: today: paul krugman, brad de long (called progressive ) Background: private vs. social costs: private and social effects can differ, social benefits: willingness to pay, policy should respond to differences between private and social costs.
