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The New Political Economy


Political economy has been a thriving field in mainstream economics over the past fifteen years. The new political economy uses ideas from incentive theory to understand the interaction of political and economic forces in shaping policy. The aim of the lecture is to provide an overview of the achievements in this field in a way that is accessible to a wide audience.

We will discuss the main theoretical ideas and the growing body of evidence that supports their relevance. It will also set these ideas in the history of economic thought. The lecture will demonstrate how these ideas have practical relevance in thinking about specific policy issues including on-going debates about the organisation of government and the role of the state.

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