Directions: Prepare and post your Public Choice Theory Outline to the designated assignment thread. Your Public Choice Theory outline should consist of a maximum of a 600 word-count specification.

 

 

Public Choice Theory produces an economic analysis of governments’ responses to market failures and assumes government intervention to produce public goods in the event of market failures or externalities. As we’ve learned, asymmetric information describes a situation where one party to a market transaction has more information about a product or service than the other. Such a situation can be directly applied to the global disruptions caused the COVID-19 pandemic – a negative externality; no national strategy or policy; loss of over 206,000 family members, citizens, friends, and acquaintances. In the US, the unemployment rates are the highest since the Great Depression. Prepare a Public Choice Theory Outline analyzing the US government’s role, policies, and decision-making, and actions in the uncertain economic environment caused by a widespread negative externality like COVID-19.

What policies and allocation of resources should be incorporated into the outline? What role(s) and (public goods) are required in your analysis? What about the capacity of the public health infrastructure; and, what market initiatives are necessary to off-set the influence of asymmetric information problems (under or over-allocation of resources); and, what spillover costs does your analysis identify? What strategies are identified in your outline (e.g. The Defense Production Act (DPA) of 1950, as amended (50 U.S.C. 4501 et seq.) that may be deployed to increase output(s) affecting the production of Personal Protective Equipment (PPE) and distribution of vaccines?

Using Porter’s (2008) article, The five competitive forces that shape strategy, and the Morbidity and Mortality Weekly Report, issued by the US Department of Health and Human Services/Centers for Disease Control and Prevention on September 18, 2020, prepare a Public Choice Theory outline analyzing the US government’s decision-making and policies since the onset of the COVID-19 pandemic. Address the role asymmetric information has played in the government’s response evidenced in the US government’s policy response (or lack thereof) to mitigate the spread of the virus in the US. Prepare your outline using Arial, 12-point font and at least 1.5 (between-line) spacing. Refereed journal articles are posted in the Module session timeline to provide a reflective context for the writing. Consult and incorporate other refereed sources to prepare your outline, as necessary. Note: Wikipedia and Investopedia are not refereed sources.

Refereed articles posted in the Module timeline to guide the development of your outline are:

1. Congressional Research Service (2020) – The Defense Production Act.
2. FEMA (2020) – Use of Defense Production Act Authorities to Support the Pandemic response.
3. Gogoi (2020) – $600 A Week: Poverty Remedy Or Job Slayer?
4. Horsley (2020) – 3 Months Of Hell: U.S. Economy Drops 32.9% In Worst GDP Report Ever.
5. Lopez, et al. (2020) – Morbidity and Mortality Weekly Report
6. Porter (2008) – The five competitive forces that shape strategy.