Corruption- can it be avoided?


  In Principal-Agent problem, agent serves (or fails to serve) the interests of a principal. The action of agent on behalf of his principal requires some discretion. There are situations that include 3rd party players (persons or corporate identities) who gains/loses by the action of the agent. There are regulations, violation of which causes a possibility of a cost (as a penalty) being...

Political Economy- A Science


I am being amazed by the ingenuity of John Stuart Mill since I’ve been reading his works, i.e., ‘On Liberty’. Also mentioned before, John Mill, in his Principles of Political Economy, argued that economics was not the “dismal science” that its radical and literary critics had supposed. He has put quite an effort on explaining his view on the Definition and Method of Political Economy. At his...

Boserupian Evolution of Agriculture

credit: TheDialogue

Boserup argues that the main stimulus to development of agriculture and productivity is the population growth. Her argument was an opposing view against the Malthus and Ricardo, who developed the macroeconomic theory of the relationship between demographic and agricultural movement in Europe. Mathusian theory claimed that “a population can never increase beyond the food supplied necessary to...

Do Policymakers’ decisions lead to an efficient allocation?


Usually, voluntary exchange without any external intervention leads to an efficient allocation of goods and services under the ideal market conditions. This is justified by the fact that prices coordinate the activities of buyers and sellers and transmits necessary information about the strength of demand and supply. Nonetheless, this type of efficiency is not an ideal one, because there are...