A Theory of Entangled Political Economy, with Application to TARP and NRA

22 Pages Posted: 12 Mar 2014

See all articles by Adam C. Smith

Adam C. Smith

Johnson & Wales University

Richard E. Wagner

George Mason University - Department of Economics

Bruce Yandle

Clemson University; PERC - Property and Environment Research Center

Date Written: March 10, 2010

Abstract

The recent financial crisis has provoked a raft of contending claims as to whether the cause of the crisis is better attributed to market failure or political failure. Such claims are predicated on a presumption that markets and polities are meaningfully separate entities. To the contrary, we argue that contemporary arrangements create an entangled political economy that renders theorizing based on separation often misleading. Within this alternative framework of entangled political economy, we illuminate both the recent Troubled Assets Relief Program (TARP) and the New Deal’s National Recovery Administration (NRA).

Keywords: Bailout, Political economy, Credit markets, Economic calculation, Constitutional economics

JEL Classification: E6, D7, H1

Suggested Citation

Smith, Adam and Wagner, Richard E. and Yandle, Bruce, A Theory of Entangled Political Economy, with Application to TARP and NRA (March 10, 2010). Public Choice, Vol. 148, No. 1-2, 2011. Available at SSRN: https://ssrn.com/abstract=2407007

Adam Smith (Contact Author)

Johnson & Wales University ( email )

801 W. Trade St.
Charlotte, NC 28202
United States
(980) 598-3221 (Phone)
(980) 598-3201 (Fax)

Richard E. Wagner

George Mason University - Department of Economics ( email )

4400 University Drive
334 Enterprise Hall
Fairfax, VA 22030
United States
(703) 993-1132 (Phone)

Bruce Yandle

Clemson University ( email )

101 Sikes Ave
Clemson, SC 29634
United States

PERC - Property and Environment Research Center

2048 Analysis Drive
Suite A
Bozeman, MT 59718
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
35
Abstract Views
516
PlumX Metrics