ECO-2013 Lecture Notes - Lecture 6: Median Voter Theorem, Public Choice, Rational Ignorance
Document Summary
The size and growth of the u. s. government: the facts. Total government spending accounted for only 9. 4% of gdp in 1930, and only one third of this spending was at the federal level. Government spending, particularly at the federal level, soared from 1930 to 1980. Total government spending rose from 9. 4% of gdp in 1930 to. After remaining fairly constant between 1980 and 2000, the size of the. If 40% of gdp is spent through the political process instead of the market process, you should better understand the political process. Political decision-making: an overview: public choice. Using the tools of economics to understand the political process is called public choice analysis. We are not making value judgments: economics of voting. Rational ignorance effect- a rational individual has little or no incentive to acquire information needed to cast an informed vote.
