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This textbook examines corruption through a macroeconomic lens,
exploring the relationship between corruption, fiscal policy, and
political economy. It merges macroeconomic growth models with
elements of political economic theory to address important applied
topics such as income inequality within and across countries,
growth slowdowns, and fiscal crises. Revised and updated to include
new research findings and recent policy discussions, the second
edition contains 15 new sections and 2 new chapters on topics such
as public defaults, the wage elasticity of work and the interest
elasticity of saving, and the economic and fiscal impact of the
2020 pandemic. Most of the basic ideas are illustrated using a
two-period model of government investment that captures the future
cost of policies that favor the present. The more subtle and
advanced issues are illustrated and, in some cases, quantified,
using the overlapping-generations model of economic growth. The
models used to illustrate the mechanisms of economic growth are
extended to incorporate politics and the behavior of public
official. The text concludes with a thorough discussion of policy
reforms designed to address the issues discussed in earlier
chapters. Intended for students familiar with intermediate-level
economics, the second edition contains a technical appendix,
expanded end-of-chapter questions and problems, and a complete
solutions manual. The second edition also offers updated resources
for instructors, including sample syllabi and over 550 multiple
choice questions. Offering a unified explanation for the causes and
consequences of government failure, fiscal crisis, and needed
policy reforms, this text is appropriate for advanced undergraduate
and beginning graduate courses in macroeconomics, political
economy, and public policy.
This text is an introduction to the newer features of growth theory
that are particularly useful in examining the issues of economic
development. Growth theory provides a rich and versatile analytical
framework through which fundamental questions about economic
development can be examined. Structural transformation, in which
developing countries transition from traditional production in
largely rural areas to modern production in largely urban areas, is
an important causal force in creating early economic growth, and as
such, is made central in this approach. Towards this end, the
authors augment the Solow model to include endogenous theories of
saving, fertility, human capital, institutional arrangements, and
policy formation, creating a single two-sector model of structural
transformation. Based on applied research and practical experiences
in macroeconomic development, the model in this book presents a
more rigorous, quantifiable, and explicitly dynamic dual economy
approach to development. Common microeconomic foundations and
notation are used throughout, with each chapter building on the
previous material in a continuous flow. Revised and updated to
include more exercises for guided self study, as well as a
technical appendix covering required mathematical topics beyond
calculus, the second edition is appropriate for both upper
undergraduate and graduate students studying development economics
and macroeconomics.
This text is an introduction to the newer features of growth theory
that are particularly useful in examining the issues of economic
development. Growth theory provides a rich and versatile analytical
framework through which fundamental questions about economic
development can be examined. Structural transformation, in which
developing countries transition from traditional production in
largely rural areas to modern production in largely urban areas, is
an important causal force in creating early economic growth, and as
such, is made central in this approach. Towards this end, the
authors augment the Solow model to include endogenous theories of
saving, fertility, human capital, institutional arrangements, and
policy formation, creating a single two-sector model of structural
transformation. Based on applied research and practical experiences
in macroeconomic development, the model in this book presents a
more rigorous, quantifiable, and explicitly dynamic dual economy
approach to development. Common microeconomic foundations and
notation are used throughout, with each chapter building on the
previous material in a continuous flow. Revised and updated to
include more exercises for guided self study, as well as a
technical appendix covering required mathematical topics beyond
calculus, the second edition is appropriate for both upper
undergraduate and graduate students studying development economics
and macroeconomics.
This book addresses major economic problems affecting the United
States and proposes policy reforms to target them. The authors use
a broad survey of economic research to conduct an evidence-based
assessment of four economic issues affecting the US and other
developed nations: slowing economic growth, unsustainable public
debt increases, widening wage inequality, and climate change.
Finding that the problems are interconnected and should be dealt
with in a comprehensive manner, the authors explain how current
policies have contributed to the issues and make recommendations on
policy reforms. All four issues are examined in one place and the
resulting policy recommendations form a consistent plan to mediate
the problems simultaneously. Providing a comprehensive approach to
some of economic policy’s most difficult problems, this book will
be an excellent resource for students and researchers interested in
macroeconomic theory, public sector economics, international
economics, labor economics, and environmental economics.
This textbook examines corruption through a macroeconomic lens,
exploring the relationship between corruption, fiscal policy, and
political economy. It merges macroeconomic growth models with
elements of political economic theory to address important applied
topics such as income inequality within and across countries,
growth slowdowns, and fiscal crises. Revised and updated to include
new research findings and recent policy discussions, the second
edition contains 15 new sections and 2 new chapters on topics such
as public defaults, the wage elasticity of work and the interest
elasticity of saving, and the economic and fiscal impact of the
2020 pandemic. Most of the basic ideas are illustrated using a
two-period model of government investment that captures the future
cost of policies that favor the present. The more subtle and
advanced issues are illustrated and, in some cases, quantified,
using the overlapping-generations model of economic growth. The
models used to illustrate the mechanisms of economic growth are
extended to incorporate politics and the behavior of public
official. The text concludes with a thorough discussion of policy
reforms designed to address the issues discussed in earlier
chapters. Intended for students familiar with intermediate-level
economics, the second edition contains a technical appendix,
expanded end-of-chapter questions and problems, and a complete
solutions manual. The second edition also offers updated resources
for instructors, including sample syllabi and over 550 multiple
choice questions. Offering a unified explanation for the causes and
consequences of government failure, fiscal crisis, and needed
policy reforms, this text is appropriate for advanced undergraduate
and beginning graduate courses in macroeconomics, political
economy, and public policy.
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