https://at-ceu.studyguide.timeedit.net/modules/DOPP5676?type=COREPublic choice theory offers valuable insights into political decision-making by analyzing how individual incentives and institutional structures influence collective outcomes. Think about the development of the 2018 trade war between USA and China. Trump's tariffs on steel and aluminum benefited domestic manufacturers but increased costs for automakers, construction firms, and consumers. The U.S. steel industry lobbied heavily for protectionist measures, showing classic rent-seeking behavior-where industries use political influence to secure favorable policies rather than competing in the market. The benefits of tariffs were concentrated among a few industries (e.g., U.S. steel producers), while the costs were spread out among millions of businesses and consumers. Public choice theory explains why protectionist policies persist-small groups with high stakes push for policies, while the larger public, facing minor individual losses, does not mobilize as effectively. Further, while Trump's tariffs were not explicitly designed to target swing counties, they benefited key Rust Belt states like Pennsylvania, Michigan, and Ohio-which were crucial for his electoral strategy. Public choice theory suggests that politicians create policies to maximize electoral support, and these tariffs appealed to blue-collar workers in manufacturing-heavy battleground states. China's counter-tariffs were strategically targeted at industries in Trump-supporting regions, especially agriculture in the Midwest and cost the Republicans a big share of votes in the subsequent elections. These are the kinds of real life phenomena that can be analysed with public choice theory.This course explores the foundations of public choice theory, analyzing how economic and political institutions shape collective decision-making. It covers key theoretical models, including voting systems, rent-seeking, and bureaucracy, while integrating empirical research to assess real-world policy outcomes. Students will engage with case studies and empirical literature to evaluate the effectiveness of public choice theories in explaining government behavior, policy outcomes, and international differences in economic performance of nations. By the end of the course, participants will develop critical analytical skills to assess political incentives and policy design and their effects from both theoretical and empirical perspectives.Part of the Governance specialization for MAPP and MPAPart of the Policy track courses for MAIPA