Routledge Political Economy and Policy Analysis

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. Review "Antonio Merlo has written an outstanding text on the economic foundations of political economy and policy analysis. The book is written in an engaging style with accessible models and applications to education, health care, and redistribution policy.", David P. Baron, Davis S. and Ann M. Barlow Professor Emeritus of Political Economy and Strategy, Stanford University, USA "This book on Political Economy and Policy Analysis provides a theoretically rigorous treatment of a wide range of topics of current interest. The exposition is extremely clear and accessible. The Discussion section at the end of each chapter provides an overview of the recent literature on the topics covered, and places them in the context of current events. It would be a pleasure to learn from this excellent advanced undergraduate textbook, or to teach from it.", Jess Benhabib, Paulette Goddard Professor of Political Economy, New York University, USA "This book equips students to explore a range of important policy issues that require insights from economics and political science. The analysis presented reflects a range of recent developments that have transformed the field in recent years once again putting political economy back in the mainstream of economics. It is suited for a wide range of students who wish to advance their understanding of policy-making processes.", Sir Timothy Besley, School Professor of Economics and Political Science & W. Arthur Lewis Professor of Development Economics, London School of Economics, UK "The field of political economy has long lacked a suitable undergraduate textbook. Antonio Merlo has written a rigorous and engaging book that meets this need. The book expertly shows students how to combine economics and politics to shed light on contemporary policy issues.", Stephen Coate, Kiplinger Professor of Public Policy, Cornell University, USA "Merlo provides an excellent introduction to political economy, which I highly recommend to advanced undergraduate students, or anyone looking for a formal introduction to the field.", Christopher S. Cotton, Professor of Economics, Queen’s University, Canada "Has the