Political Economy: Success or Failure?

23 Pages Posted: 5 Jan 2012

Date Written: December 30, 2011

Abstract

Political Economy and Public Choice have studied the interactions between the economy and the polity for over 60 years now. The present paper endeavors to provide a critical discussion of this literature and its achievements. In particular, it starts with the different approaches based on empirically tested or politometric models, and it then proceeds to discuss different studies of the effects that particular rules of the game have on politico-economic outcomes. The third part will deal with studies that take institutions to be endogenous and aim at explaining why particular institutions emerge. Finally, the question whether political economy has been a success or a failure will be tackled. While the success in terms of the position gained in economic research and teaching is undeniable, a look at one of the most thriving recent areas of economics, namely happiness research, will reveal that fundamental lessons all too often remain disregarded.

JEL Classification: D720

Suggested Citation

Frey, Bruno S., Political Economy: Success or Failure? (December 30, 2011). CESifo Working Paper Series No. 3684. Available at SSRN: https://ssrn.com/abstract=1980062

Bruno S. Frey (Contact Author)

CREMA ( email )

Südstrasse 11
Zurich, CH 8008
Switzerland
+41 44 380 00 78 (Phone)

University of Basel ( email )

Peter Merian-Weg 6
Basel, 4002
Switzerland

Register to save articles to
your library

Register

Paper statistics

Downloads
202
Abstract Views
1,026
rank
148,603
PlumX Metrics