Questions tagged [political-economy]

a term used for studying production and trade, and their relations with law, custom, and government, as well as with the distribution of national income and wealth.

Filter by
Sorted by
Tagged with
13
votes
5answers
11k views

What happens if the “control variables” are also endogenous?

I work in Political Economy, and a lot of the models include "innocent" control variables such as population, inequality, colonial legacy, etc. so that the author can claim unbiasedness on their ...
10
votes
2answers
202 views

Fair voting procedure when there are many issues

When several people have to decide about a single yes/no issue*, the natural decision rule to use is the majority rule. But when there are many issues to decide upon, the majority rule is "unfair" ...
7
votes
5answers
2k views

Reading list: history of economic thought / political economy

Can you all please suggest books that I can read to get started in the fields of political economy and the history of economic thought? While my major in Mathematical Economics has given me a good ...
6
votes
2answers
74 views

References where fewer rules resulted in better governance

I am trying to find references that support an idea that I think I read in a book on theory of institutions. I can't find the original reference. Basically, I'd like to find anything that talks about ...
5
votes
3answers
4k views

Are state owned enterprises really inefficient?

The typical right wing/free market argument, that leads to privatisation of government assets is that the government assets will be far more efficiently managed when in the hands of profit seeking ...
4
votes
2answers
456 views

Quantitative Marxian/Marxist micro and macro economic models?

Are there quantitative Marxian/Marxist/neo-Marxist economic models like Dynamic Stochastic General Equilibrium models or Euro Area Wide (micro-founded) models - that can be used by central banks and ...
4
votes
2answers
367 views

Is utility in neoclassical economics a circular argument/concept?

Neoclassical economics as a utility function that represents a consumer's preference ordering over a choice set. Joan Robinson criticized utility for being a circular concept: "Utility is the ...
4
votes
1answer
234 views

Do countries invest in the country's own stock market?

For example can the government of the UK invest in some company with shares in the FTSE 100? Or can Russia take the opportunity now that the shares of oil companies are low to buy them?
4
votes
1answer
646 views

What are the factors that drive openness in developed vs developing countries

My questions are: What are the factors (both positive and negative) that drive openness in a country? Do they differ between developed (e.g USA) and developing (e.g China) countries? Will these ...
4
votes
1answer
421 views

Criticism of “Modern Political Economics” by Varoufakis, Halevi, Theocarakis

The book "Modern Political Economics" is quite critical about "neoclassical economics", the basic claim being, if I understand correctly, that the models which "neoclassical economics" (armed with ...
3
votes
1answer
55 views

“Tightness” of political elections and public attention

Are there any empirical studies on political elections that focus on the "tightness" of the race and how much attention the election receives from the public (or perhaps voter turnout). By "tightness"...
3
votes
1answer
792 views

How many major economic systems are there?

One of the biggest political debates regards the best type of economic system, which usually boils down to capitalism vs socialism. Are there other kinds of economic systems, aside from more "...
3
votes
1answer
36 views

How long into the past can we trace the effect of institutions?

In one of my courses we recently went through several institutional economic papers (The colonial origins of comparative development, The Slave Trade and the Origins of Mistrust in Africa, The Long-...
3
votes
1answer
65 views

Is Keynesian economic theory still considered capitalism?

When we compare neoclassical economic theory with Keynesian economic theory as they pertain to capitalism, do they both fall within the spectrum of capitalism? or is Keynes's idea of state ...
3
votes
1answer
115 views

Educational self sufficiency

I heard on UK and US news that higher education is very high and a lot of students are in debt. In Israel here education is very cheap, because it is heavily subsidized by the government (Israel tries ...
3
votes
2answers
110 views

What would happen to US economy before US government lose control over its national debt?

From this wiki page we can clearly see that US national debt is growing steadily after 2010 and now it's larger than US GDP already (at the end of 2019). Still it's commonly believed the debt is ...
3
votes
1answer
41 views

Military expenditure over time

The following graph from the world bank website shows the world wide military expenditure in percentage of the world GDP over time from 1988 to 2015 I am trying to find similar data over a much ...
3
votes
1answer
199 views

Keynesian Ethics

Reading Hayek and von Mises I found a bunch of strong arguments against interventionism beyond economics (philosophical and ethical aspects). The technical difference between Classical and Keynesian ...
3
votes
1answer
38 views

What is the loss of productivity of not using the international system of measurments (SI)

The USA and some other countries are not using the SI-system. Are there any estimates of how much productivity is lost because of having to convert numbers? (non-SI countries, SI-countries) I imagine ...
3
votes
2answers
1k views

What are the logistic implications of using bottle caps as currency?

I have recently been playing the game of fallout 4 and I was struck by an interesting spec of the game. People in the nuclear post-apocalyptic world use bottle caps as barter money. Inquiring a ...
2
votes
1answer
129 views

Why do all countries recognize foreign wealth?

Recently I learned that by 2016 that 1% of the population will have 50% of the worlds wealth. That means that more than 50% of individuals actually has less than he would in a totally fair economy. ...
2
votes
1answer
30 views

What does 'Health spending as a share of GDP' mean?

I am watching a video essay talking about healthcare spending in different countries and one of the first graphs shown was titled: 'Health spending as a share of GDP'. After doing some reading, I ...
2
votes
1answer
55 views

What are the Economic reasons and explanations to make a referendum?

Australia is now conducting a survey on same sex marriage, to decide if they take the vote to the parliament or not. Although it is called a survey, the population is treating it as a referendum. The ...
2
votes
2answers
1k views

Adam Smith and universal opulence

Adam Smith seems to be saying that the goal of governing is "universal opulence which extends itself to the lowest ranks of the people," which he appears to think achievable in capitalism with the ...
2
votes
1answer
98 views

In what way specifically are US CEO's able to engage in rent-seeking and exploit corporate governance to increase compensation?

I've seen videos where Prof. Stiglitz mentions CEO compensation associated with rent-seeking: https://youtu.be/b7wIw1VNjSk?t=29m58s https://youtu.be/heOVJM2JZxI?t=41m28s I looked on the web and saw ...
2
votes
1answer
44 views

Why politicians choose Mega Projects in developing countries?

kindly forgive me if this doesn't belong here. I just thought probably it's suited here. Why do politicians choose mega projects in developing countries instead of spending more on health and ...
2
votes
1answer
42 views

Why does China spend so much on agricultural/farming subsidies?

I use the OECD's Total Support Estimates (TSE), which I think is a proper measure of total agricultural subsidies (but correct me if I'm wrong). China's TSE is by far the largest at \$239B in 2017 ...
2
votes
1answer
99 views

Hayek influenced by?

I am going to write an essay about Hayek's views on economic and political (individual) liberty. I am trying to find books to develop a positive discussion on the topic, but I do not know where to ...
2
votes
1answer
164 views

Is Iranian rial going to get boosted?

I was reading about the Iran's economy and Iranian rial. I have read the news regarding the lift of sanctions from Ira, which had allowed the purchase of Iranian rial in America. I was having query ...
2
votes
0answers
153 views

Isn't it trivial that preferences are single-peaked over two alternatives?

I'm studying Down's Median Voter Theorem which states that if voters have single-peaked preferences over two alternatives arranged along a one-dimensional political spectrum, a majority rule voting ...
2
votes
1answer
142 views

What effect does a wage ratio cap have on the efficency of allocation of labour?

Introduction Wage ratio caps prevent the wages of all employees from exceeding a maximum of a fixed multiple of the wages of the lowest paid employee in a given institution. Wage ratio caps can ...
2
votes
1answer
107 views

Political theories of inflation

A recent op-ed (paywall) in the Financial Times about inflation stated that (emphasis mine): Across the developed economies, the Phillips curve has gone ignominiously flat. The world's leading ...
2
votes
0answers
58 views

What sectors would be most affected positively or negatively by Trump´s trade agreement renegotiations?

One of Trump´s stated policies is that he will renegotiate the trade agreements with China and the Canada and México (NAFTA). This renegotiation might go well in which maybe the US gets freer access ...
2
votes
0answers
172 views

What are the pro's and cons of GST (goods and service tax) ? And what influence it can make in the Indian economy? [closed]

As government is planning to introduce GST in India, what change it will make in India's economy? GST is introduced in many countries except American, so why American has not introduce GST yet?
2
votes
0answers
58 views

Is America economy, Connecitcut's economy, and the global in general recovering and better than the year 2008?

Please answer all three if you can. I live in Connecticut, America, and of course global trade and economies matter as we are becoming more global from technology. December 2007 the markets ...
2
votes
2answers
138 views

If America's economy collapsed what would happen to all of the citizens? What if the whole global economy collapsed? [closed]

My journalism professor is not an expert in finance or economics but has studied history. She is always giving us a negative lecture on the America's economy and how the rich are taking al of the ...
2
votes
0answers
30 views

The new AIIB, Japan and America

The AIIB is the Asian Infrastructure Investment Bank. It's an international financial institution proposed by China. Almost all Asian countries have joined and a lot of European countries. Here is the ...
1
vote
2answers
44 views

Is it possible to imagine humanity without a modern understanding of money? [closed]

Of course we can't just take money from current world order and give nothing back. In theory, can an advanced civilization exist without money at all? May be this is an utopic idea because of... what?...
1
vote
1answer
56 views

Post Brexit Referendum employment theory

According to Chuka Umunna, Labour MP for Streatham and prominent pro-EU campaigner: People were told: "if immigration levels fall, it will be easier to get a job, and easier to get a job that's ...
1
vote
1answer
216 views

Are white collar workers the blue collar workers of the future?

Edward Luttwak published an essay in 1994, titled Why Facism is the Wave of the Future; he wrote in this essay: Partly because with generational change even senior managers can now themselves work ...
1
vote
1answer
72 views

Would the military be more efficiant if they were unionized?

I hear about the extremely long work hours in the army. I understand it hardens them for readiness for combat situations. With the technology and increase of intelligence need to operate it would a ...
1
vote
1answer
33 views

Best strategy to incentivise third party investment

How can governments incentivise NGOs and economic consulting firms to invest in national reserve conservation? I guess this would be more political, but what are the more economic aspects of trying to ...
1
vote
1answer
102 views

Formula for feasibility for production versus import

Is there a formula that can tell us whether it's better for a country to produce something inside (creating tariffs & regulations, subsidies) or it is better to import (lowering tariffs, etc)? ...
1
vote
2answers
76 views

What's the term for an economic policy that has negligible effect for most, but a significant effect for a few?

I remember this came up around tariffs in the US on aluminum. They have a negligible effect on the price of an aluminum can, but aggregated across all the aluminum cans sold, it can have a significant ...
1
vote
1answer
53 views

What have been some trade-offs that the U.S. has made?

In Thomas Sowell's book titled, "Basic Economics", he says the following: "Unmet needs" are inherent in these circumstances, whether we have a capitalist, socialist, feudal, or other kind of economy. ...
1
vote
0answers
65 views

Which metrics best characterise 'socialist' and 'capitalist' economies?

I am interested in finding some metrics that capture how 'socialist' or 'capitalist' a country was throughout modern history, and to include these alongside those in the gapminder dataset, to explore ...
1
vote
0answers
22 views

Interventions during the current Corona crisis: Government credits

In the light of the current public health crisis caused by COVID-19, I would like to know more about how government or central bank interventions are supposed to influence and limit the economic ...
1
vote
0answers
60 views

Yang's Impact on Algorithmic Trading?

Presidential candidate Andrew Yang has published the following policy proposals on his website: 1. FINANCIAL TRANSACTION TAX Financial markets have grown dramatically over the past decades. ...
1
vote
0answers
23 views

Are there political economy models that include a “majority capture” of (protectionist) trade policy?

A highly cited model of protectionism is the "protection for sale" model or Grossman and Helpman. (For an [updated] evaluation of that model see for instance the Advanced International Trade textbook ...
1
vote
0answers
29 views

Basis about money

How RBI prints money on what bases? other than changing old money to new money. If price increases and tax increases on what bases they will print more money. Please explain in simple words