Public Sector Economics

 In Class Exercise Five - Voting

1.  Why might voters not choose the alternatives they personally favor?  Give an example.

2.  Why are choices made in markets a clearer representation of desires than choices made with voting ballots?

3.  Graphically and in words explain rational ignorance.  How would your graph and result differ if someone thought they might have a lot to lose if a certain tax were passed?

4.  What is the difference between "rational ignorance" and "rational irrationality"?

5.  Why and how do both lead to bad economic outcomes from voting?

6.  Caplan provides four examples of "rational irrationality" in voting -- myths that persist with voters.  What are they?

7.  Do you think that he is right about all four?  Why or why not?

8.  Do you agree with Caplan's use of the term "rational irrationality" - why or why not?

9.  What is the "miracle of aggregation" argument?  What is Caplan's criticism?  What is Callahan's criticism?

10.  According to Farrand, voters respond to "political signals" -- and these are reasons they vote the way they do.  Explain.  How does this differ from Caplan?

11.  What are Wittman's basic arguments that the political process is efficient?  Which one does Caplan (seemingly) disagree with and why? 

12.  Comment on Wittman's arguments.

13.  Is Caplan's argument really that politicians are not to blame?  Comment on Farrand's argument.

14.  Do you have any other questions over this material?