PLCY 231: Normative Dimensions of Policy Analysis -

Theories, Methods, and Ethical Foundations for Analyzing Decision in Public Policy

FALL 2005

Instructor: Mort Webster Office: Abernethy Hall 217
Course Time: T-TH 3:30-4:45 pm Email: mort@unc.edu
Class Location: Hamilton Hall 517
Phone: 843-5010
Office Hours: Tues & Thurs 11am-12pm, 3:30-5pm, and by appointment



Announcements:

8/29/05: Welcome to the PLCY 231 website.   I am currently in the process of updating links.  It should be completed by the end of this week.  Please be patient.




Course Syllabus (html) (pdf) (MS-Word)

Assignments:

   Assignment #0

    Assignment #1 - Rational Choice Framework

    Assignment #2 - Ethical Frameworks

    Assignment #3 - Decision Analysis Practice Problems

   Assignment #4 - Application of Decision Analysis and Game Theory

    Case Assignments for #1,2,4

    Term Paper Description


Other Handouts:

    Guide to Leading Discussions and Generating Discussion Questions

    Guidance on Reading Essence of Decision




On-Line Readings (PDF files): [Not on E-Reserve]

Thursday September 8
Tuesday,
September 13 - Consumer Theory

    Kreps Chs. 1&2 "An Overview" and "Preferences and Choices"
    Kreps Ch. 3.1 "Von Neumann-Morgenstren Expected Utility
    Kreps Ch. 3.4 "Subjective Probability"
    Kreps Ch.3.4 & 3.6 "Problems", "Normative Dimensions"
    Tversky & Kahneman (1974) "Judgement Under Uncertainty: Heuristics and Biases"

   Sen (1977) “Rational Fools: A Critique of the Behavioural Foundations of Economic Theory”

Thursday, September 15 - Social Choice
        Kreps Ch. 5 "Social Choice and Efficiency"
        Arrow (1950): “A Difficulty in the Concept of Social Welfare”
        Sen (1977b): “Interpersonal Comparisons of Welfare"

Tuesday, September 20Public Choice
    Buchanan and Tullock (1971) The Calculus of Consent
    Ch. 1: “Introduction“
    Ch. 2: “The Individualistic Postulate”
    Ch. 3: “Politics and the Economic Nexus”
    Ch. 4: “Individual Rationality in Social Choice”
    Ch. 5: “The Organization of Human Activity”

Thursday, September 22 - Collective Action
    Buchanan and Tullock (1971) The Calculus of Consent
    read:   Ch. 10: “Simple Majority Voting”
    optional:
        Ch. 9: “The Structure of the Models”
        Ch. 11: “Simple Majority Voting and the Theory of Games”

    Mancur Olson, The Logic of Collective Action: Public Goods and the Theory of Groups
    Ch. 1: "A Theory of Groups and Organizations"


Tuesday, October 11
    S.E. Frost, Basic Teachings of the Great Philosophers, Ch. 7: “Man and the State” (pp. 175-206)

Thursday, October 13
    James Rachels, b. James Rachels, The Elements of Moral Philosophy
                    Ch. 7: “The Utilitarian Approach” (pp. 96 – 106) and
                    Ch. 8: “The Debate over Utilitarianism” (pp. 107 – 121).
 

Tuesday, October 25
        Robert Nozick (1974) Anarchy, State, and Utopia
               Ch. 3 "Moral Constraints and the State"


Thursday, October 27
       Hausman and McPherson (1993) "Taking Ethics Seriously: Economics and Contemporary Philosophy"
       Journal of Economic Literature 31 (2): 671-731.


Thursday, November 10 - Decision Analysis I
    SKIM through Chapters 2, 3
    Read chapter  4 on structuring Decisions from Clemen. 
    and Chapter 12 on Value of Information
   
    Focus on getting the vocabulary, and reading through the numerical examples.
    Skip all sections on "Influence Diagrams".



<> Tuesday November 15
    Clemen Chapters 13 and 14

Tuesday November 22 - Multiattribute Utility Functions
    Clemen Chapters 15 and 16

Tuesday November 29 - Application of Decision Analysis
    "The curious role of "learning" in climate policy: Should we wait for more data?" Mort Webster.  The Energy Journal; 2002; 23, 2; pg. 97.

Thursday, December 1
    "Decisions" by Deborah Stone - on E-Reserve

Tuesday, December 6 - In-Class exercise
    Apply DA to HW cases

Thursday, December 8 - Course Wrap-up
    Course wrap-up and evaluations
 



Additional (Optional) Readings (PDF files):

Social Choice
    Sen(1977) "Social Choice Theory: A Re-examination"

Alternative Theories and Lenses for Public Policy
    Shulock (1999): “The Paradox of Policy Analysis: If it is not used, Why Do We Produce So Much of It?”

Including Ethics in Economics?
    Hausman and McPherson (1993): “Taking Ethics Seriously: Economics and Contemporary Philosophy.”