ACE 556

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Credit: 4 hours.

Economic theory is used to study both the effects and the causes of public policies that influence agricultural industries, consumers, and taxpayers. Neoclassical models of government intervention are used to study the welfare effects of income redistribution and stabilization policies and macroeconomic policies as they affect agriculture. Formal models of political economy and public choice are used to analyze the underlying causes of public policy. Emphasis is placed on the political power of interest groups as an explanation of public policy decisions. Prerequisite: ECON 500 or equivalent and ACE 502 and ACE 503.

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