DD9.txt - nterests were to blame for an inefficient policy On the contrary the special interest groups would be the reason for implementing the socially

DD9.txt - nterests were to blame for an inefficient policy...

This preview shows page 1 out of 1 page.

nterests were to blame for an inefficient policy. On the contrary, the special interest groups would be the reason for implementing the socially optimal policy. In other words, finding evidence of the role of special interest groups does not tell us anything about what is efficient or what is optimal. To do so, we need an explicit theoretical argument or model. Not only that, to come to the correct conclusion we need a correct theoretical model in the sense that it addresses relevant factors, such as externalities. In my previous post, I criticized economists for too often simply asserting that a policy is inefficient and subsequently applying Olson s model to explain why we get such stupid, inefficient policies. I also argued that political economy should shift to using an evolutionary argument. In that post, I was short on some of these details. As a result, in this post I want to outline what I meant by this. In 1950, Armen Alchian published a paper entiled Uncertainty, Evolution, and Economic Theory.
Image of page 1
  • Fall '15
  • DR. Aimal

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes