ARE 242 -- Spring 2003

Course Syllabus

Gordon Rausser

ÊTuesdays and Thursdays, 12:30 - 2:00

201Giannini Hall

Class Date	Reading Assignment
Tuesday January 21, 2003	Rausser, G.C. and R.E. Goodhue. "Public Policy: Its Many Analytical Dimensions," in Handbook of Agricultural Economics, B. Gardner and G. Rausser (eds.). Volume 2, Chapter 39, Elsevier North Holland, 2002.
Thursday January 23, 2003	Alston, J.M. and J.S. James. "The Incidence of Agricultural Policy," in Handbook of Agricultural Economics, B. Gardner and G. Rausser (eds.). Volume 2, Chapter 33, Elsevier North Holland, 2002. Chambers, R.G., "The incidence of agricultural policies," Journal of Public Economics 57, (1995) 317-335. Floyd, J.E. "The Effects of Farm Price Supports on the Returns to Land and Labor in Agriculture." Journal of Political Economy 73 (1965), p. 148-158.
Tuesday January 28, 2003	Innes, R.D. and G.C. Rausser, "Incomplete markets and government agricultural policy," American Journal of Agricultural Economics 71 (1989), 915-931.ÊÊÊÊÊÊÊÊÊÊÊ Just, R.E. and G.C. Rausser. "Environmental and Agricultural Policy Linkages and Reforms in the United States Under the GATT," American Journal of Agricultural Economics, Vol. 74, No. 3 (August 1992) pp. 766-774.
Thursday January 30, 2003	Rausser, G.C., J.A. Chalfant, H.A. Love and K.G. Stamoulis. "Macroeconomic Linkages, Taxes and Subsidies in the U.S. Agricultural Sector," American Journal of Agricultural Economics, Vol. 68, No. 2 (May 1986) pp. 399-412. Schuh, G.E., "The Exchange Rate and U.S. Agriculture," American Journal of Agricultural Economics 56 (1974), 1ö13.
Tuesday February 4, 2003	Williams, J. "Agricultural Commodity Markets: Spot, Futures, Options, Forward Contracts and Derivatives," in Handbook of Agricultural Economics, B. Gardner and G. Rausser (eds.). Volume 1, Chapter 13. Elsevier-North Holland. 2001.
Thursday February 6, 2003	Innes, R., "Market Failures and Second-best Analysis, with a Focus on Nutrition, Credit and Incomplete Markets," in Handbook of Agricultural Economics, B. Gardner and G. Rausser (eds.). Volume 2, Chapter 35, Elsevier North Holland, 2002.
Tuesday February 11, 2003	Chambers, R.G. "Information, Incentives and the Design of Agricultural Policies," in Handbook of Agricultural Economics, B. Gardner and G. Rausser (eds.). Volume 2, Chapter 34, Elsevier North Holland, 2002.
Thursday February 13, 2003	Baron, D. ãDesign of Regulatory Mechanisms and Institutions,ä in R. Schmalensee and R. Willig, eds., Handbook of Industrial Organization (Vol. 2). New York: North-Holland. 1989. Kydland, F.E. and E.C. Prescott, "Rules Rather than Discretion: The Inconsistency of Optimal Plans." Journal of Political Economy, Vol. 85 (1977), pp. 473-492.
Tuesday February 18, 2003	Aaron, H.J., "Politics and the Professors Revisited." American Economic Review 79 (1989), 1-15. de Gorter, H. "Political Economy of Agricultural Policy," in Handbook of Agricultural Economics, B. Gardner and G. Rausser (eds.). Volume 2, Chapter 36, Elsevier North Holland, 2002.
Thursday February 20, 2003	Downs, A. Economic Theory of Democracy. New York: Harper, 1957. ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ Olson, M. The Logic of Collective Action. Harvard University Press, Cambridge, Massachusetts, 1965.
Tuesday February 25, 2003	Steiner, P.O. "The Public Sector and the Public Interest," in An Analysis and Evaluation of Public Expenditures: The PPB System. Compendium of papers submitted to the Subcommittee on Economy and Government of the Joint Economic Committee, Congress of the United States, Vol. 1 (1969) pp. 14-65. Tullock, G. "The Welfare Costs of Tariffs, Monopolies and Theft." Western Economics Journal, Vol. 5 (1967), pp. 224-232.
Thursday February 27, 2003	Bhagwati, J.N., "Directly Unproductive Profit Seeking Activities: A Welfare Theoretic Synthesis and Generalization." Journal of Political Economy, Vol. 90, pp. 988-1002. Krueger, A.O. "The Political Economy of the Rent-Seeking Society." American Economic Review Vol. 64 (1974) pp. 291-303. Krueger, A., "Political economy of agricultural policy," Public Choice 87:1 (1996) 73-175.
Tuesday March 4, 2003	Peltzman, S., "Toward a General Theory of Regulation," Journal of Law and Economics 211 (1976), 211-40. Stigler, G. "The Theory of Economic Regulation." Bell Journal of Economics, Vol. 2 (1971) pp.3-21.
Thursday March 6, 2003	Rausser, G.C. "Political Economic Markets: PESTs and PERTs in Food and Agriculture." American Journal of Agricultural Economics, Vol. 64, No. 3 (December 1982) pp. 821-833. Rausser, G.C. "Predatory versus Productive Government: The Case of U.S. Agricultural Policies." Journal of Economic Perspectives, Vol. 6 (1992), pp. 133-158.
Tuesday March 11, 2003	Becker, G.S. "A Theory of Competition Among Pressure Groups for Political Influence," Quarterly Journal of Economics, Vol. 98, No. 3 (August 1983) pp. 371-400. Becker, G.S. "Public Policies, Pressure Groups, and Dead Weight Costs," Journal of Public Economics, December 1985, Vol. 28, No. 3, pp. 329-347.
Thursday March 13, 2003	Bullock, D.S., "Are Government Transfers Efficient? An Alternative Test of the Efficient Redistribution Hypothesis," Journal of Political Economy 103 (1995), 1236-75. Dixit, A. and J. Londregan, " Redistributive politics and economic efficiency," American Political Science Review 89 (1995), 856-866. Gardner, B.L. "Efficient Redistribution through Commodity Markets." American Journal of Agricultural Economics, May 1983, pp. 225-234. Gardner, B.L., "Causes of U.S. Farm Commodity Programs," Journal of Political Economy 95 (1987), 290-310. Jeong, K.S., D.S. Bullock and P. Garcia, "Testing the Efficient Redistribution Hypothesis: An Application to Japanese Beef Policy," American Journal of Agricultural Economics 81(2), May 1999: 408-23.
Tuesday March 18, 2003	Grossman, G.M. and E. Helpman, "Protection for sale," The American Economic Review 84 (1994), 833-850. Grossman, G.M. and E. Helpman, "Trade wars and trade talks," Journal of Political Economy 103 (1995), 675-708.
Thursday March 20, 2003	Harsanyi, J.C., "A Simplified Bargaining Model for the N-Person Cooperative Game," International Economic Review 4 (1963), 193-220. Harsanyi, J.C. Rational Behavior and Bargaining Equilibrium in Games and Social Situations. Cambridge: Cambridge University Press, 1977. Nash, J.F., "The Bargaining Problem," Econometrica 18 (1950) pp. 155-162. Nash, J.F. "Two Person Cooperative Games." Econometrica 21 (1953) pp. 128-140. Rausser, G.C. and P. Zusman. "The Nash Solution to the Bargaining Problem," in Political Power and Endogenous Policy Formation, Chapter 2,Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. "The Harsanyi Solution to the Bargaining Problem," in Political Power and Endogenous Policy Formation, Chapter 3, Cambridge University Press (forthcoming).
Tuesday March 25, 2003	SPRING BREAK
Thursday March 27, 2003	SPRING BREAK
Tuesday April 1, 2003	Ball, R. "Interest Groups, Influence and Welfare, "Economics and Politics 7 (1995): 119-46. Beghin, J.C. and W.E. Foster, "Political criterion functions and the analysis of wealth transfers," American Journal of Agricultural Economics 74 (1992), 787-793. Bullock, D.S., "In Search of Rational Government: What Political Preference Function Studies Measure and Assume," American Journal of Agricultural Economics 76 (1994), 347-361. Rausser, G.C. and P. Zusman. "Static Political Economic Analysis," in Political Power and Endogenous Policy Formation, Chapter 4, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. "Normative Political-Economic Analysis," in Political Power and Endogenous Policy Formation, Chapter 5, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. "Dynamic Political Economic Analysis," in Political Power and Endogenous Policy Formation, Chapter 6, Cambridge University Press (forthcoming).
Thursday April 3, 2003	Khanna, J., "Cooperative versus noncooperative behavior: the case of agricultural research," The Review of Economics and Statistics 75 (1993), 346-352. L—pez, R.A., "Political economy of U.S. sugar policies," American Journal of Agricultural Economics 71 (1989), 20-31. Rausser, G.C. and P. Zusman. "Political Power, Ideology and Organizational Structures," in Political Power and Endogenous Policy Formation, Chapter 7, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. "Political Power, Influence and Lobbying," in Political Power and Endogenous Policy Formation, Chapter 8, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. "The Political Economy of Commodity Market Intervention," in Political Power and Endogenous Policy Formation, Chapter 10, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. "The Political Economy of Public Research and Development," in Political Power and Endogenous Policy Formation, Chapter 11, Cambridge University Press (forthcoming).
Tuesday April 8, 2003	de Gorter, H., G.C. Rausser and D.J. Nielson. "Productive and Predatory Public Policies: Research Expenditures and Producer Subsidies in Agriculture." American Journal of Agricultural Economics, Vol. 74, No. 1 (February 1992) pp. 27-37. Rausser, G.C. and P. Zusman. "Political-Economic Analysis of Redistributive Policy and Public Good Policy," in Political Power and Endogenous Policy Formation, Chapter 12, Cambridge University Press (forthcoming).
Thursday April 10, 2003	Foster, W.E. and G.C. Rausser. "Price Distorting Compensation Serving the Consumer and Taxpayer Interest." Public Choice, Vol. 77, No. 2 (October 1993) pp. 275-291. Rausser, G.C. and P. Zusman. "Interest Groups, Coalition Breaking, and Productive Policies," in Political Power and Endogenous Policy Formation, Chapter 13, Cambridge University Press (forthcoming).
Tuesday April 15, 2003	Rausser, G.C. and P. Zusman. "Political-Economic Analysis of Land Reform," in Political Power and Endogenous Policy Formation, Chapter 14, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. "Political-Economic Analysis of Water Resource Systems," in Political Power and Endogenous Policy Formation, Chapter 15, Cambridge University Press (forthcoming).
Thursday April 17, 2003	Rausser, G.C. and P. Zusman. "The Political Economy of Trade Liberalization," in Political Power and Endogenous Policy Formation, Chapter 16, Cambridge University Press (forthcoming). de Gorter, H., G.C. Rausser and A. Schmitz. "Rent Seeking and International Trade in Agriculture," in Agricultural Globalization, Trade, and the Environment, Moss, C.B., Rausser, G.C., Schmitz, A., Taylor, T.G. and Zilberman, D. (eds.), Kluwer Academic Publishers, Massachusetts, 2001.
Tuesday April 22, 2003	Rausser, G.C. and P. Zusman. "Political Econometrics," in Political Power and Endogenous Policy Formation, Chapter 18, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. "The Political Econometrics of the Israeli Dairy Industry," in Political Power and Endogenous Policy Formation, Chapter 19, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. "The Political Econometrics of the U.S. Wheat Industry," in Political Power and Endogenous Policy Formation, Chapter 21, Cambridge University Press (forthcoming).
Thursday April 24, 2003	Rodrik, D., "Understanding economic policy reform," Journal of Economic Literature 34:9 (1996) 41. Rausser, G.C. "Lessons for Emerging Market Economies in Eastern Europe," in The Emergence of Market Economies in Eastern Europe, Christopher Clague and Gordon Rausser (eds.). Cambridge, MA: Blackwell Publishers, 1992, Chapter 19.
Tuesday April 29, 2003	Rausser, G.C. and P. Zusman. "Public Policy and Constitutional Prescription," American Journal of Agricultural Economics, Vol. 74, No. 2 (May 1992) pp. 247-257; also in Political Power and Endogenous Policy Formation, Cambridge University Press (forthcoming).
Thursday May 1, 2003	Rausser, G.C. "An Emerging Framework for Economic Development: An LDC perspective," in Industrial Policy for Agriculture in the Global Economy, S.R. Johnson and S.A. Martin (eds.). Iowa State University Press, Ames, 1993, Chapter 11, pp. 229-245. Rausser, G.C. "Implications of Structural Adjustment: Experience in Developing World for Eastern Europe," American Journal of Agricultural Economics, Vol. 72, No. 5, (December 1990) pp. 1252-1256.
Tuesday May 6, 2003	McCubbins, M.D, R.G. Noll, and B.R. Weingast. "Structure and Process, Politics and Policy: Administrative Arrangement and the Political Control of Agencies," Virginia Law Review, Vol. 75, pp.431-482. Aighion, Philippe, Alberto Alesina, and Francesco Trebbi. ãEndogenous Political Institutionsä, Discussion Paper No. 1957, Harvard Institute of Economic Research, Harvard University, June 2002.
Thursday May 8, 2003	Rausser, G.C. and L.K. Simon. "A Non Cooperative Model of Collective Decision Making: A Multi-lateral Bargaining Approach," Working Paper, Department of Agricultural and Resource Economics, University of California at Berkeley (1999).
Tuesday May 13, 2003	Stiglitz, J. Distinguished lecture on economics in Government the private uses of public interests: incentives and institutions, Journal of Economic Perspectives 12:3-22, 1998. Williamson, O.E. "Contested Exchange Versus the Governance of Contractual Relations," Journal of Economic Perspectives, Winter 1993.