Political Economy

How societies generate, and distribute, wealth and resources while pursuing particular goals is at the heart of studies of political economy. Building on this tradition, this research cluster starts with the recognition that modern policy making often involves a need to reconcile multiple economic, environmental and societal goals and that understanding relevant trade-offs (who gains and who loses) is a central part of the task.

In practical terms, this means asking questions such as：

• What frameworks can be used to identify and assess the gains and losses from specific policies?
  
• How do, and should, distributional issues be reflected in policy assessments?
• What role should the state play in directing economic and social activity?
• How do we incentivise parties to solve common problems, particularly those that cross jurisdictional boundaries？
• How do rules, regulations and behavioural incentives influence behaviour?
• What is the risk tolerance of a society and how is this get reflected in policy?
• How can we encourage innovation but at the same time protect consumers and citizens from any potentially harmful effects?
• How do we assess and incorporate inter-temporal trade-offs, such as where the benefits/costs to current and future citizens differ？

Addressing these core political economy questions is particularly urgent at this time following the global pandemic and as many countries continue to grapple with increasing levels of poverty, inequality and social exclusion which, in some cases, is upending the established political order. At the global level there is also the pressing need to develop policy to deal with a changing climate, which if unaddressed could have enormous geo-political and socio-economic implications.