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
PEPE (Political Economy & Public Economics) Seminar - Livio Di Lonardo (Bocconi)
Title: Repression and Autocratic Consolidation
Abstract - We develop a dynamic model of autocracy where repression suppresses dissent, possibly at the expense of policies that reduce popular discontent—and thus, future mobilization. Accounting for the possibility that repression could hasten or hinder autocratic consolidation, we identify a unique equilibrium that takes one of three forms: deterrence, where the autocrat is never challenged; instability, where challenges occur every period; or a mixed strategy equilibrium with periods of deterrence and periods with challenges. When repression hastens consolidation, the autocrat invests heavily in repression, so as to deter dissent and accelerate the opposition's defeat. When repression bolsters resistance, a tradeoff arises between deterrence and consolidation, and the autocrat may prefer to invite challenges. We then examine the effects of indirect foreign interference - such as sanctions or withholding foreign aid disbursement - aimed at protecting the opposition or promoting democratization. Even under ideal conditions, such interference cannot achieve both goals simultaneously.