The Political Economy Aspects of the Redistributive Role of Government in a General Equilibrium Micro-founded Macro Model

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Zakeri, Hassan | 2009

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 39598 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Nili, Masoud
Abstract:
The role of government in economy has been a controversial subject in economics. Lately, there has been some fundamental change in evaluating this subject. One could mention two of these as 1) realizing the importance of micro-founded macro model for evaluating policy, and 2) taking into consideration the rent-seeking behavior of politicians. In this research, a general equilibrium in a micro-founded macro model will be discussed and then in political economics framework, the effect of government on this equilibrium will be investigated. Only the redistribution role of government has been considered. First, the model in which a benevolent government is seeking optimal policy is Discussed. Then, the Effect of Rent-Seeking Behaviors of Politicians in a Developed Democratic Country Would be Obtained.
Keywords:
Political Economy ; Micro- Founded Macro Models ; Redistributive Goverment

No TOC