This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

Journal of Economic Perspectives: Vol. 27 No. 2 (Spring 2013)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

JEP - All Issues


Economics versus Politics: Pitfalls of Policy Advice

Article Citation

Acemoglu, Daron, and James A. Robinson. 2013. "Economics versus Politics: Pitfalls of Policy Advice." Journal of Economic Perspectives, 27(2): 173-92.

DOI: 10.1257/jep.27.2.173

Abstract

The standard approach to policy making and advice in economics implicitly or explicitly ignores politics and political economy and maintains that if possible, any market failure should be rapidly removed. This essay explains why this conclusion may be incorrect; because it ignores politics, this approach is oblivious to the impact of the removal of market failures on future political equilibria and economic efficiency, which can be deleterious. We first outline a simple framework for the study of the impact of current economic policies on future political equilibria -- and indirectly on future economic outcomes. We then illustrate the mechanisms through which such impacts might operate using a series of examples. The main message is that sound economic policy should be based on a careful analysis of political economy and should factor in its influence on future political equilibria.

Article Full-Text Access

Full-text Article (Complimentary)

Authors

Acemoglu, Daron (MIT)
Robinson, James A. (Harvard U)

JEL Classifications

A11: Role of Economics; Role of Economists
D72: Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
E60: Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General

Comments

View Comments on This Article (0) | Login to post a comment


Journal of Economic Perspectives


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

JEP - All Issues

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us