Policy Implications of Socio-Economics
Review of Policy Research, Vol. 9, No. 3
Posted: 20 Dec 2017
Date Written: March 1, 1990
A variety of efforts are currently underway to develop alternatives to the neoclassical paradigm and neoclassical analysis of economic behavior. Here, the author seeks not to argue which approach is most productive, but to demonstrate the useful policy implications of adding key non-economic (social, psychological and political) variables to a paradigm that attempts to model economic behavior. This co-deterministic paradigm is called socio- economics. The article discusses the different and often insightful policy analysis that results from employing a socio-economic set of variables in four major areas: (1) allowing for shifting preferences; (2) including institutional contexts and influences within which individual transactions take place; (3) recognizing the effects of political as well as economic power differences; and (4) combining macro and structural policies.
Suggested Citation: Suggested Citation