Investopedia defines political economy as the study and use of how economic theory and methods influences political ideology.
Investopedia goes on to say:
“Political economy is the interplay between economics, law and politics, and how institutions develop in different social and economic systems, such as capitalism, socialism and communism. Political economy analyzes how public policy is created and implemented.
“Because various individuals and groups have different interests in how a country or economy is to develop, political economy as a discipline is a complex field, covering a broad array of potentially competing interests. Political economy also involves the use of game theory, since groups competing for finite resources and power must determine which courses of action will give the most beneficial results, and what the probability of those results being reached are.”
Atlas topic, subject, and course
Investopedia, at http://www.investopedia.com/terms/p/political-economy.asp, accessed 30 April 2016.
Landsburg quote from minute 0.20 of the Economics Video – Incentives Matter, at https://www.youtube.com/watch?v=VE_RLd08DvU, accessed 30 April 2016.
Page created by: Ian Clark, last modified 30 April 2016.