Robust Political Economy: An Institutional Alternative Against Monetary Disequilibrium and Market Discoordination

2013 ◽  
Author(s):  
Pablo Paniagua
Keyword(s):  
Political Economy ◽  
Robust Political Economy

scholarly journals ROBUST POLITICAL ECONOMY AND THE PRIORITY OF MARKETS

2017 ◽  
Vol 34 (1) ◽  
pp. 1-24 ◽  
Author(s):  
Mark Pennington
Keyword(s):  
Political Economy ◽  
Basic Structure ◽  
Decision Makers ◽  
Mutual Advantage ◽  
Regime Types ◽  
Robust Political Economy ◽  
Political Economic ◽  
Private Contracting ◽  
Cooperative Venture ◽  
Economic Regime

Abstract:This essay offers a “nonideal” case for giving institutional priority to markets and private contracting in the basic structure of society. It sets out a “robust political economy” framework to examine how different political economic regime types cope with frictions generated by the epistemic limitations of decision-makers and problems of incentive incompatibility. Focusing on both efficiency arguments and distributive justice concerns the essay suggests that a constitutional structure that prioritizes consensual exchange is more likely to sustain a cooperative venture for mutual advantage.

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