Political Economy in Macroeconomics

Allan Drazen

Published by Princeton University Press 2000

Political Economy in Macroeconomics

Allan Drazen

https://doi.org/10.1515/9780691188003

Overview
Contents

About this book

Originally, economics was called political economy, and those studying it readily accepted that economic decisions are made in a political world. But economics eventually separated itself from politics to pursue rigorous methods of analyzing individual behavior and markets. Recently, an increasing number of economists have turned their attention to the old question of how politics shape economic outcomes. To date, however, this growing literature has lacked a cogent organization and a unified approach. Here, in the first full-length examination of how political forces affect economic policy decisions, Allan Drazen provides a systematic treatment, organizing the increasingly influential "new political economy" as a more established field at the highly productive intersection of economics and political science.

Although he provides an extraordinarily helpful guide to the recent explosion of papers on political economy in macroeconomics, Drazen moves far beyond survey, giving definition and structure to the field. He proposes that conflict or heterogeneity of interests should be the field's essential organizing principle, because political questions arise only when people disagree over which economic policies should be enacted or how economic costs and benefits should be distributed. Further, he illustrates how heterogeneity of interests is crucial in every part of political economy. Drazen's approach allows innovative treatment--using rigorous economic models--of public goods and finance, economic growth, the open economy, economic transition, political business cycles, and all of the traditional topics of macroeconomics.

This major text will have an enormous impact on students and professionals in political science as well as economics, redefining how decision makers on several continents think about the full range of macroeconomic issues and informing the approaches of the next generation of economists.

Author / Editor information

Allan Drazen is Professor at the Eitan Berglas School of Economics, Tel Aviv University, and Professor of Economics at the University of Maryland.

Reviews

"[A] magnificent new book. . . . Drazen's book has established the benchmark for years to come, in terms of both coverage and depth of critical assessment. . . . This is a book you will want on your shelf."---Leonardo Bartolini, Journal of International Economics

"Very well written and concise. . . Highly recommend[ed] . . . to any student interested in political economy."---Gilles Saint-Paul, Journal of Economic Literature

"Winner of the 2000 Award for Best Professional/Scholarly Book in Economics, Association of American Publishers"

Topics

Frontmatter Publicly Available Download PDF	i
CONTENTS Publicly Available Download PDF	vii
PREFACE Requires Authentication Unlicensed Licensed Download PDF	xi
INTRODUCTORY NOTE Requires Authentication Unlicensed Licensed Download PDF	xiii
PART I. Basic Issues and Tools of Analysis
CHAPTER ONE. What is a Political Economy? Requires Authentication Unlicensed Licensed Download PDF	3
CHAPTER TWO. Economic Models for Political Analysis Requires Authentication Unlicensed Licensed Download PDF	20
CHAPTER THREE. Decisionmaking Mechanisms Requires Authentication Unlicensed Licensed Download PDF	60
PART II: COMMITMENT, CREDIBILITY, AND REPUTATION
CHAPTER FOUR. The Time-Consistency Problem Requires Authentication Unlicensed Licensed Download PDF	101
CHAPTER FIVE. Laws, Institutions, and Delegated Authority Requires Authentication Unlicensed Licensed Download PDF	131
CHAPTER SIX. Credibility and Reputation Requires Authentication Unlicensed Licensed Download PDF	166
PART III. Heterogeneity and Conflicting Interests
CHAPTER SEVEN. Elections and Changes of Policymakers Requires Authentication Unlicensed Licensed Download PDF	219
CHAPTER EIGHT. Redistribution Requires Authentication Unlicensed Licensed Download PDF	309
CHAPTER NINE. Public Goods Requires Authentication Unlicensed Licensed Download PDF	372
CHAPTER TEN. Inaction, Delay, and Crisis Requires Authentication Unlicensed Licensed Download PDF	403
PART IV. Application to Policy Issues
CHAPTER ELEVEN. Factor Accumulation and Growth Requires Authentication Unlicensed Licensed Download PDF	457
CHAPTER TWELVE. The International Economy Requires Authentication Unlicensed Licensed Download PDF	526
CHAPTER THIRTEEN. Economic Reform and Transition Requires Authentication Unlicensed Licensed Download PDF	615
CHAPTER FOURTEEN. The Size of Government and the Number of Nations Requires Authentication Unlicensed Licensed Download PDF	675
BIBLIOGRAPHY Requires Authentication Unlicensed Licensed Download PDF	735
AUTHOR INDEX Requires Authentication Unlicensed Licensed Download PDF	765
SUBJECT INDEX Requires Authentication Unlicensed Licensed Download PDF	771