Tuesday, November 24, 2009

Dynamic Political Economy: A Promising Field

I've talked about the LAEF (Laboratory for Aggregate Economics and Finance) before in this post. The LAEF is directed by Finn Kydland (picture on the right).

The newsletter of Fall 2008 presents research in a promising field in economics called dynamic political economy and optimal taxation. Here's how the newsletter defines the field's goal:
to examine the determinants of a wide range of government policies, both from a positive and a normative perspective, relying on the tools of dynamic contracting and mechanism design.
The newsletter summarizes the findings of some interesting articles in this field, written mostly by young economists. If you like the topic, make sure to take a look at their work.

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