Customer Reviews

Political Economy in Macroeconomics

5 star:		(3)
4 star:		(1)
3 star:		(1)
2 star:		(0)
1 star:		(0)

 

 

Numerous issues concerning conflict of interest and strategic behavior are involved in political matters and economic policy decisions in particular, and in macroeconomic outcomes in general. Allan Drazen presents the most complete analysis of the literature concerning these issues, both from a theoretical and an empirical perspective. I think this book is the Blanchard and Fischer's of Political Economy. Superb.

Though politics and economics continue to be the two most influential forces in our society, the discussion relating the two is often lofty and incomprehensible to common men. Drazen eases the burden of confusion by providing distinct discussion and wonderfully elaborated points of concern. A great tool for understanding politicla economy.

The book covers several topics on political economics and macroeconomics including (but not limited to) inconsistency in government policies, voting, election and political cycles. The first chapters get into a better discussion of topics. But as the book proceeds, the coverage of book from each topic or model becomes brief, leaving the reader to seek the related paper in journals to understand the topic in depth. The models are simplified and normally the result follows, the book refers you for complete discussion to the papers.

Another big problem with the book is lack of an introductory chapter that goes through some mathematical tools or concepts that will be used later in the book, such as game theory or "single crossing property", etc. Though these may be commonly used, but a reiteration of definitions will be useful. This book leaves you to look it up somewhere else.

Though the book can be a basis for understanding political economics, I wouldn't rank that as a reference or complete book in this field. Instead I would recommend the book by Tabellini, et.al .

This books covers the field of political economy from a very strong point of view. It was a useful supplement in grad school for me, though I wish it had a bit more on international issues.

The review below ("Lacking enough depth and details") was written by a disgruntled student of mine soon after he finished my course, presumably because he was dissatisfied with his grade. Take it for what you will. My view is that Persson and Tabellini's book is nicely complementary with mine (it covers different things and has a different focus). I use both in teaching, as well as a number of other books.