Four essays on the political economy of economic reform

Abstract

This thesis provides political-economy explanations for the prevalence of inefficient government policies. Possible solutions to the problem of non-adoption of efficient policies are also provided. Understanding why inefficient government policies exist, and how they may be reformed, is key in the field of political economy. A leading example is trade policies, where the reality of most countries’ policies is so blatantly contrary to all the normative prescriptions of the economist that there seems to be no way to understand it except by delving into the politics. Labor market policies provide other examples. The recent wave of economic reforms has heightened the interest in these questions. The thesis is part of Claussen’s Dr. Polit exam at the University of Oslo. Claussen defended the thesis on March 24, 2003.