Most of economics takes politics for granted. Through some (often implausible) assumptions, it seeks to explain away political structures by characterizing them as stable and predictable or as inconsequential in understanding what goes on in an economy. Such attempts are misguided, and this book shows how governments and political institutions are composed of people who respond to incentives and whose behavior and choices can be studied through the lens of economics. This book aims to bridge the gap between economics and politics, and in doing so hopes to instill in the reader a deeper appreciation for social scientific thinking. Opening with a refresher on microeconomics and an introduction to the toolkit of political economy, it ensures that the necessary building blocks are in place before building up from the level of the individual and the firm to show how a political–economic equilibrium can be achieved. The text explores how to separate primitives—the external parts of a model that we cannot affect—from outcomes—the internal parts of a model that we can. Moreover, it demonstrates that economic and political issues alike can be studied within the same general framework of analysis. Political Economy and Policy Analysis offers readers the chance to gain a more sophisticated understanding of political processes, economic processes, and the interplay among them. Adopting an applied microeconomics approach, it will be ideal for upper-level undergraduate or postgraduate courses on political economy, public choice, or policy analysis. A complementary workbook with exercises and solutions that accompanies Political Economy and Policy Analysis is available for download under the eResources tab at: https://www.routledge.com/Political-Economy-and-Policy-Analysis/Merlo/p/book/9781138591783.

This text gives students a framework for analyzing public policy choices. The unique "political economy" approach focuses on the institutions and market processes that contribute to the solving of public problems.

The ideal introductory textbook to the politics of the policymaking process This textbook uses modern political economy to introduce students of political science, government, economics, and public policy to the politics of the policymaking process. The book's distinct political economy approach has two virtues. By developing general principles for thinking about policymaking, it can be applied across a range of issue areas. It also unifies the policy curriculum, offering coherence to standard methods for teaching economics and statistics, and drawing connections between fields. The book begins by exploring the normative foundations of policymaking—political theory, social choice theory, and the Paretian and utilitarian underpinnings of policy analysis. It then introduces game theoretic models of social dilemmas—externalities, coordination problems, and commitment problems—that create opportunities for policy to improve social welfare. Finally, it shows how the political process creates technological and incentive constraints on government that shape policy outcomes. Throughout, concepts and models are illustrated and reinforced with discussions of empirical evidence and case studies. This textbook is essential for all students of public policy and for anyone interested in the most current methods influencing policymaking today. Comprehensive approach to politics and policy suitable for advanced undergraduates and graduate students Models unify policy curriculum through methodological coherence Exercises at the end of every chapter Self-contained appendices cover necessary game theory Extensive discussion of cases and applications

Drawing together leading scholars, the book provides a revealing new map of the US political economy in cross-national perspective.

A selection of essays examining economic policy and politics in the United States.

A theoretical framework for analyzing the complex relationship of education, growth, and income distribution. The dominant role played by the state in the financing, regulation, and provision of primary and secondary education reflects the widely-held belief that education is necessary for personal and societal well-being. The economic organization of education depends on political as well as market mechanisms to resolve issues that arise because of contrasting views on such matters as income inequality, social mobility, and diversity. This book provides the theoretical framework necessary for understanding the political economy of education—the complex relationship of education, economic growth, and income distribution—and for formulating effective policies to improve the financing and provision of education. The relatively simple models developed illustrate the use of analytical tools for understanding central policy issues. After offering a historical overview of the development of public education and a review of current econometric evidence on education, growth, and income distribution, the authors lay the theoretical groundwork for the main body of analysis. First they develop a basic static model of how political decisions determine education spending; then they extend this model dynamically. Applying this framework to a comparison of education financing under different regimes, the authors explore fiscal decentralization; individual choice between public and private schooling, including the use of education vouchers to combine public financing of education with private provision; and the social dimension of education—its role in state-building, the traditional "melting pot" that promotes cohesion in a culturally diverse society.

Countries in Latin America and the Caribbean have made remarkable progress in improving the living conditions of their people since the 1990s. Poverty has declined by almost 50 percent, and average life expectancy has increased substantially, especially for children under the age of five. Most children now attend primary school, and three out of four start secondary education. These advances can be largely accounted for by two factors: the fast-paced economic growth of the early 2000s and the substantial expenditures for social programs in the region. However, the region's economic slowdown has halted the pace of improvement, and social policies have not been implemented consistently or effectively because of flaws in design and execution. These failings raise important questions. Who formulates social policy? What resources do actors bring to decision-making processes, and how do those resources position them within decision-making networks? These are not academic questions. The budget and economic constraints imposed by the COVID-19 pandemic mean that public policies will have to be more efficient and effective while dealing with limited resources. Few analyses to date have focused on the process of formulating social policy, the social networks involved, the details of coordination among actors and organizations, and the institutional, normative, and operational factors that make policies likely to succeed--or fail. There has not been a comprehensive, systematic study of how social policy-making processes and coordination mechanisms--formal or informal-- can make a difference in the operational effectiveness and impact of social policies. Who Decides Social Policy? Social Networks and the Political Economy of Social Policy in Latin America and the Caribbean attempts to fill this void. This book combines an institutional political economy approach to policy making with social network analysis of social policy formulation processes. Based on extensive interviews with governmental and nongovernmental actors, the case studies of social policy formulation in Argentina, The Bahamas, Bolivia, and Trinidad and Tobago show that while societal actors are central in the networks in South American countries, government officials are the main participants in the Caribbean countries. The comparative analysis of the networks of ideas, information, economic resources, and political power across these cases indicates that differences in the types of bureaucratic systems and governance structures may explain the diversity of actors with decision power and the resources used to influence social policy formulation across the region. These analytical and methodological contributions--combined with specific examples of policies and programs--will help to enhance the efficiency, efficacy, and sustainability of public policies in the social arena.

Only public policy analysis textbook on the market that takes a truly comparative, international, and cross-cultural approach. Organized around policy issues, rather than countries, to examine important policy ‘lessons’ that affect the everyday lives of citizens. Jargon-free chapters begin with a review of a specific policy issue and its context, present analytic tools and frameworks for fully understanding the policy issue, and provide cases/exercises for students to obtain hands-on practice in applying the methods and frameworks.

Policymakers around the world have increasingly agreed that macroeconomic discipline, microeconomic liberalization, and outward orientation are prerequisites for economic success. But what are the political conditions that make economic transformation possible? At a conference held at the Institute for International Economics, leaders of economic reform recounted their efforts to bring about change and discussed the impact of the political climate on the success of their efforts. In this book, these leaders explore the political conditions conducive to the success of policy reforms. Did economic crisis strengthen the hands of the reformers? Was the rapidity with which reforms were instituted crucial? Did the reformers have a "honeymoon" period in which to transform the economy? The authors answer these and other questions, as well as providing first-hand accounts of the politically charged atmosphere surrounding reform efforts in their countries.

This volume presents eight good practice examples of problem-driven political economy analysis conducted at the World Bank, and reflect what the Bank has so far been able to achieve in mainstreaming this approach into its operations and policy dialogue.