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What Does the Public Know about Economic Policy, and How Does It Know It?

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Author Info

  • Author-Name: Alan S. Blinder

    (Princeton University)

  • Alan B. Krueger

    (Princeton University)

Abstract

A long tradition in economic theory models economic policy decisions as solutions to optimization problems solved by rational and well-informed agents: A single policymaker minimizes a loss function subject to some constraints. Another body of literature models policy decisions as if they were made by well-informed voters in elections of some sort.

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Bibliographic Info

Article provided by Economic Studies Program, The Brookings Institution in its journal Brookings Papers on Economic Activity.

Volume (Year): 35 (2004)
Issue (Month): 1 ()
Pages: 327-397

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Handle: RePEc:bin:bpeajo:v:35:y:2004:i:2004-1:p:327-397

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Keywords: macroeconomics; Public; Economic Policy;

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  1. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135.
  2. Victor R. Fuchs & Alan B. Krueger & James M. Poterba, 1998. "Economists' Views about Parameters, Values, and Policies: Survey Results in Labor and Public Economics," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1387-1425, September.
  3. Robert J. Blendon, 1997. "Bridging the Gap between the Public's and Economists' Views of the Economy," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 105-118, Summer.
  4. Persson, T. & Tabellini, G., 1997. "Political Economics and Macroeconomic Policy," Papers 630, Stockholm - International Economic Studies.
  5. Dan Fuller & Doris Geide-stevenson, 2003. "Consensus Among Economists: Revisited," The Journal of Economic Education, Taylor & Francis Journals, vol. 34(4), pages 369-387, December.
  6. Bryan Caplan, 2002. "Sociotropes, Systematic Bias, and Political Failure: Reflections on the Survey of Americans and Economists on the Economy," Social Science Quarterly, Southwestern Social Science Association, vol. 83(2), pages 416-435.
  7. David Romer, 2003. "Misconceptions and Political Outcomes," Economic Journal, Royal Economic Society, vol. 113(484), pages 1-20, January.
  8. Hansen, Karsten T & Heckman, James J & Mullen, Kathleen J, 2003. "The effect of schooling and ability on achievement test scores," Working Paper Series 2003:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  9. Blinder, Alan S & Morgan, John, 2005. "Are Two Heads Better than One? Monetary Policy by Committee," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 37(5), pages 789-811, October.
  10. Sendhil Mullainathan & Andrei Shleifer, 2005. "The Market for News," American Economic Review, American Economic Association, vol. 95(4), pages 1031-1053, September.
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