"The Nature of Political Economy”

Topics: Economics, Political science, Political economy Pages: 3 (915 words) Published: October 27, 2012
An essay on Robert Gilpin
“The Nature of Political Economy”
This chapter introduces differences and similarities between politics and economics. Both of them affect one another. In another hand, politicians and economists have different ideas and consumptions about the same facts. Also, they choose different ways of analysis. Moreover, Mr. Gilpin talks about the importance of the understanding the nature of political economy. In today’s rapidly changing world, where globalization takes place and deeply influences national economics, international affairs, government’s decisions and international politics are very popular topics among people to discuss. What’s why the study of political economy becomes more vogue among scientists from different fields. Definition of political economy has been changing from time to time. If in the 18th century political economy was considered as “a science that teaches a nation how to become reach”, today the theory of political economy draws heavily on the subject of economics, political science, law, history and sociology or different closely related branches of economics to explain the politico-economic behavior of a country.  What about economics, it is the social science that examines how people choose to use limited or scarce resources in attempting to satisfy their unlimited wants. We can discuss about three different schools of economics and their interpretation about the individual’s economic actions. These schools are: neoclassical institutionalism, the public-choice school and “new political economy”. In my view, public choice theory is directed toward the study of politics based on economic principles. The most important contribution of public school theory is that, it recognizes that politicians are motivated by self-interest. As I understand, however, neoclassical economists believe that human decisions are based on rational efforts, they prove that economic actions are driven by individual’s desire to increase...
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