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Markets and Measurement I
MPA 612: Public Management Economics January 8, 2018
Markets and Measurement I MPA 612: Public Management Economics - - PowerPoint PPT Presentation
Markets and Measurement I MPA 612: Public Management Economics - - PowerPoint PPT Presentation
Markets and Measurement I MPA 612: Public Management Economics January 8, 2018 Plan for today What are markets? What is the public sector and why is it necessary? What is economics even? Plan for the class Markets and capitalism What
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What are markets? What is the public sector and why is it necessary? What is economics even?
Plan for today
Plan for the class
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Markets and capitalism
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What happened?
250 500 1,000 2,000 4,000 8,000 16,000 32,000 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 GDP per capita Britain Japan Italy China India
Technology!
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The technological revolution
Inputs → Outputs
As the time to produce stuff decreases, living standards increase
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An economic system with private property and markets and firms
Self sufficient family based production Market economy with family based production Capitalist economic system
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Quick definitions
Private property The right and expectation that you can use your stuff how you want
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Quick definitions
Markets A way of connecting people who may mutually benefit by exchanging goods or services through a process
- f buying and selling
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Quick definitions
Firms Organizations that use labor (people) and capital (inputs) to produce goods and services to make a profit
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Technology and markets
Who feeds Provo?
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Technology and markets
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However… inequality
Not all gains are spread equally (within and between)
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However… the environment
Gains have side effects
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Public goods game
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The public sector
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Non-rivalrous Non-excludable
Public goods
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Collective action and coordination Rules and norms matter
Institutions
Protection of rights
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What is economics even?
And what does this have to do with being a public manager?
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The study of how people interact with each other and with their natural surroundings in providing their livelihoods, and how this changes over time.
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Homo economicus and crystal ball math Data + models + analysis = decisions vs.
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When ordinary citizens believe that no one knows more than anyone else, democratic institutions are in danger
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Plan for the class
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Main goals for the class
Talk like an economist
(or at least understand what economists are talking about)
Do public economic analysis Understand why the government is involved in the market
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Potential ethos-destroying caveat
I am not an economist
But, economics can still be useful for promoting good public policies and for making good managerial decisions. I’m also not a true believer in all economic theories or models
(or unfettered capitalism, for that matter)
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Course outline Core principles Evaluating and implementing policies Justifying policies
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Main assignments
Readings Problem sets Listen to podcasts Labs Economic briefing Midterms Final project
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