Political Economy in Macroeconomics

Author: Aaron Director
Publisher:
Publish Date: 2003-12-01
Features: This book is on a grand scale and is bound to become a standard reference work in the rapidly developing fields of political science and macroeconomics. Its contributions will be lasting and can be widely applied to graduate courses in this field as well as anyone who wishes to understand the new developments in economic theory. Its main advantages lie in the clarity of its exposition, the perfection of its treatment, and the comprehensiveness of its reviews. Perhaps what is most commendable is that it successfully connects the scattered contributions of early literature in the fields of public choice and public finance, as well as between the two fields. The formalized models of political economy are an important tool for any well-trained macroeconomist today. As a guide to these models, no book does a better job than this one. Aaron Director is not only a first-class researcher but also a first-class interpreter. This book integrates theoretical reviews, textbooks, and analytical techniques, providing a wealth of information for teaching and stimulating interest. For a while to come, you won't need any other books on political economy. This book has two obvious features: first, its vast scope, making it a monumental work in the field of new political economy; second, its innovative methodology, which extensively employs modern economic analytical tools and techniques. The rapidly revitalizing new political economy not only reconsiders the impact of political factors on economic outcomes but also widely borrows the fundamental concepts and analytical methods of modern economics—such as optimization theory, uncertainty analysis, principal-agent models, and overlapping generations models—to delve deeper into the influence of political factors on economic outcomes. What makes new political economy new is not so much its subject matter as its methodology, specifically its extensive use of formal economic models.