Political Economy and Public Economics
Political Economy and Public Economics
The Department of Economics at the University of Warwick has an active Political Economy and Public Economics (PEPE) Research Group. These two disciplines have natural complementarities. Political Economy focuses more on the political feasibility of certain policies by looking at which policies are more likely to enjoy public support and thus succeed in an electoral contest. Public economics looks more at determining which policies are optimal in every environment, but is less concerned about their political approval or feasibility.
Recent world events such as the public backlash against globalization and inequality have raised awareness for the need for more integration between these two approaches as political resistance to the adoption of potentially beneficial policies has become ever more salient. Hence by their very nature these two disciplines transcend traditional field divisions such as micro and macroeconomics: they use theoretical, empirical and experimental methods to obtain conclusions, thus generating synergies with various other groups in our department from development to experimental to history to macroeconomics to economic theory.
Our activities
PEPE Research Group Seminar
Thursday: 11.15am-12.30pm
A weekly seminar is organised that brings top economists and political scientist speakers every week for a double-feature seminar in coordination with the LSE.
For a detailed scheduled of speakers please follow the link below:
https://warwick.ac.uk/fac/soc/economics/seminars/seminars/political-economy
Organisers: Michela Redoano and Mateusz Stalinski
PEPE Research Group Annual Conference
In collaboration with colleagues from Princeton and Yale, and with the support of CEPR, the PEPE Research Group organises an annual conference which has become a central meeting of political economists in Europe. Having taken place in previous years in Venice and Rome, it attracts over 70 delegates attending from leading institutions in the US, EU and the UK. Every year, several of our PhD students get to participate in a fully funded conference with an opportunity to engage with leading scholars.
Find out more about this year's conference which will take place 26-27 April 2024 in Rome.
Organisers: Helios Herrera, Mateusz Stalinski
People
Academics
Academics associated with the Reseach Group Name research group are:
Research Students
Events
MIMA (Microeconomics Workshop in Macroeconomic Theory) - Oliver Pfauti (Yale)
Title: A Behavioral Heterogeneous Agent New Keynesian Model
Abstract: “We develop a New Keynesian model with household heterogeneity and bounded rationality in the form of cognitive discounting. The resulting behavioral heterogeneous agent New Keynesian model is consistent with recent empirical facts about the effectiveness and the transmission mechanisms of monetary and fiscal policy: monetary policy is amplified through indirect general equilibrium effects, fiscal multipliers on consumption are positive and the model delivers empirically-realistic intertemporal marginal propensities to consume. Simultaneously, and consistent with the data, the model resolves the forward guidance puzzle and remains stable at the effective lower bound as the model features equilibrium determinacy even under an interest-rate peg. The model is analytically tractable and nests a wide range of existing models as special cases, none of which can produce all the listed features within one model. We further show how the main insights from the tractable model extend to a quantitative version of the model, how the model-implied household expectations can be aligned with recent findings from survey data, and how to derive an equivalence result between heterogeneous-household models with bounded rationality and those featuring incomplete information and learning.”
This MIMA session is via Zoom, information below
Time: 31/05/2022, Tuesday 05:00 PM London
Zoom Link: https://us02web.zoom.us/j/81719302554?pwd=TTFMVUhwSjRobERnK0czRXZFeEpXZz09
Meeting ID: 817 1930 2554 Passcode: MIMA