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When Ideas Trump Interests: Preferences, Worldviews, and Policy Innovations

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  • D. Rodrik.

Abstract

The paper mapping from "interests" to outcomes in political economy depends on many unstated assumptions about the ideas that political agents have about: what they are maximizing; how the world works; and the set of tools they have at their disposal to further their interests. These ideas are subject to both manipulation and innovation, making them part of the political game. There is a direct parallel, as I will show, between inventive activity in technology and investment in persuasion and policy innovation in the political arena. I focus specifically on models professing to explain economic inefficiency.

Suggested Citation

  • D. Rodrik., 2015. "When Ideas Trump Interests: Preferences, Worldviews, and Policy Innovations," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 1.
  • Handle: RePEc:nos:voprec:2015-01-2
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    References listed on IDEAS

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    1. Richard R. Nelson & Sidney G. Winter, 2002. "Evolutionary Theorizing in Economics," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 23-46, Spring.
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    3. I. M. Destler, 2005. "American Trade Politics 4th Edition," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 3829, August.
    4. Peter J. Hammond, 1979. "Straightforward Individual Incentive Compatibility in Large Economies," Review of Economic Studies, Oxford University Press, vol. 46(2), pages 263-282.
    5. George A. Akerlof & Rachel E. Kranton, 2005. "Identity and the Economics of Organizations," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 9-32, Winter.
    6. Krueger, Anne O, 1997. "Trade Policy and Economic Development: How We Learn," American Economic Review, American Economic Association, vol. 87(1), pages 1-22, March.
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    8. David Yanagizawa-Drott, 2012. "Propaganda and Conflict: Theory and Evidence from the Rwandan Genocide," CID Working Papers 257, Center for International Development at Harvard University.
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    More about this item

    Keywords

    rent-seeking; lobbying; ideas and insterests; reforms; institutions; institutional change.;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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