Open Access BASE2010
Political Economy
Abstract
Political economy describes how human societies are organized by exchange. The critical issue for political economists is the interaction between self-directed decision making and the incentives that turn decisions into approved outcomes. In this interaction, political economists see a key role for leadership, a role that depends upon our common concern for others (Robbins, 1981). There are three roles, then, for leadership in the political economist's model: self-directed decision making, incentive making, and establishing the criteria for approved outcomes.
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