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The Political Economy of Economic Policy Advice

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  • Stefan Dercon

Abstract

This paper examines the political economy of economic policy advice. It offers a framework for assessing how to maximize the economic development impact of advice, allowing for the political incentives of those in power. It argues for a ’second best’ analysis that looks to maximize development impact given political incentives and shows how standard advice, as often given by researchers or by advisors in government or from international organisations such as World Bank and IMF may not be this second best. Furthermore, it looks at the implications of treating political constraints as endogenous. Some examples illustrate how research and advice can be more impactful taking into account local political economy conditions.

Suggested Citation

  • Stefan Dercon, 2023. "The Political Economy of Economic Policy Advice," CSAE Working Paper Series 2023-09, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2023-09
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    File URL: https://ora.ox.ac.uk/objects/uuid:11bf00de-823e-41a0-8d31-84b2b58b0d8b
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    References listed on IDEAS

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    1. Jonas Hjort & Diana Moreira & Gautam Rao & Juan Francisco Santini, 2021. "How Research Affects Policy: Experimental Evidence from 2,150 Brazilian Municipalities," American Economic Review, American Economic Association, vol. 111(5), pages 1442-1480, May.
    2. Dan Honig, 2022. "Managing for Motivation as Public Performance Improvement Strategy in Education & Far Beyond," CID Working Papers 409, Center for International Development at Harvard University.
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    Keywords

    economics ; Africa ; political economy ; policy advice;
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