Political Economy o Before we embrace an activist government we need to consider one more fact: the government is also an imperfect institution o The Condorcet paradox Arrow' s impossibility theorem The median voter theorem e Politicians with self-interest motivePolitical Economy • Before we embrace an activist government, we need to consider one more fact: the government is also an imperfect institution. • The Condorcet paradox • Arrow’s impossibility theorem • The Median voter theorem • Politicians with self-interest motive