Game theory is the study of mathematical models of conflict and cooperation between intelligent rational decision-makers. Game theory is used in economics, political science, and psychology, as well as logic, computer science. Originally, it addressed zero-sum games, in one persons gains result in losses for the other participants. Today, game theory applies to a range of behavioral relations, and is now an umbrella term for the science of logical decision making in humans, animals. Modern game theory began with the idea regarding the existence of equilibria in two-person zero-sum games. Von Neumanns original proof used Brouwer fixed-point theorem on continuous mappings into compact convex sets and his paper was followed by the 1944 book Theory of Games and Economic Behavior, co-written with Oskar Morgenstern, which considered cooperative games of several players. The second edition of this provided an axiomatic theory of expected utility. This theory was developed extensively in the 1950s by many scholars, Game theory was explicitly applied to biology in the 1970s, although similar developments go back at least as far as the 1930s.
Game theory has been recognized as an important tool in many fields. With the Nobel Memorial Prize in Economic Sciences going to game theorist Jean Tirole in 2014, John Maynard Smith was awarded the Crafoord Prize for his application of game theory to biology. Early discussions of examples of two-person games occurred long before the rise of modern, the first known discussion of game theory occurred in a letter written by Charles Waldegrave, an active Jacobite, and uncle to James Waldegrave, a British diplomat, in 1713. In this letter, Waldegrave provides a mixed strategy solution to a two-person version of the card game le Her. James Madison made what we now recognize as an analysis of the ways states can be expected to behave under different systems of taxation. In 1913 Ernst Zermelo published Über eine Anwendung der Mengenlehre auf die Theorie des Schachspiels and it proved that the optimal chess strategy is strictly determined. This paved the way for more general theorems, the Danish mathematician Zeuthen proved that the mathematical model had a winning strategy by using Brouwers fixed point theorem.
In his 1938 book Applications aux Jeux de Hasard and earlier notes, Borel conjectured that non-existence of mixed-strategy equilibria in two-person zero-sum games would occur, a conjecture that was proved false. Game theory did not really exist as a field until John von Neumann published a paper in 1928. Von Neumanns original proof used Brouwers fixed-point theorem on continuous mappings into compact convex sets and his paper was followed by his 1944 book Theory of Games and Economic Behavior co-authored with Oskar Morgenstern
Economics distinguishes in addition to physical capital another form of capital that is no less critical as a means of production – human capital. Investments in human capital entail an investment cost, just as any investment does, typically in European countries most education expenditure takes the form of government consumption, although some costs are borne by individuals. These investments can be rather costly, EU governments spent between 3% and 8% of GDP on education in 2005, the average being 5%. It has been estimated that the costs, including opportunity costs. Including opportunity costs investments in education can be estimated to have been around 10% of GDP in the EU countries in 2005, in comparison investments in physical capital were 20% of GDP. Thus the two are of similar magnitude, human capital in the form of education shares many characteristics with physical capital. Both require an investment to create and, once created, both have economic value, physical capital earns a return because people are willing to pay to use a piece of physical capital in work as it allows them to produce more output.
To measure the value of physical capital, we can simply measure how much of a return it commands in the market. In the case of human capital calculating returns is more complicated – after all, to get around this problem the returns to human capital are generally inferred from differences in wages among people with different levels of education. Thus someone with 12 years of schooling can be expected to earn, economy-wide, the effect of human capital on incomes has been estimated to be rather significant, 65% of wages paid in developed countries is payments to human capital and only 35% to raw labor. The higher productivity of well-educated workers is one of the factors that explain higher GDPs and, therefore, a strong correlation between GDP and education is clearly visible among the countries of the world, as is shown by the upper left figure. It is less clear, how much of a high GDP is explained by education, after all, it is possible that rich countries can simply afford more education.
To distinguish the part of GDP explained with education from other causes and this was based on the above-mentioned calculations of Hall and Jones on the returns on education. Finally, the matter of externalities should be considered, usually when speaking of externalities one thinks of the negative effects of economic activities that are not included in market prices, such as pollution. However, there are positive externalities – that is, positive effects of which someone can benefit without having to pay for it. Education bears with it major positive externalities, giving one person more education raises not only his or her output, educated workers can bring new technologies and information to the consideration of others. They can teach things to others and act as an example, the positive externalities of education include the effects of personal networks and the roles educated workers play in them. Positive externalities from human capital are one explanation for why governments are involved in education, the dominant model of the demand for education is based on human capital theory
Operations research, or operational research in British usage, is a discipline that deals with the application of advanced analytical methods to help make better decisions. Further, the operational analysis is used in the British military, as an intrinsic part of capability development, management. In particular, operational analysis forms part of the Combined Operational Effectiveness and Investment Appraisals and it is often considered to be a sub-field of applied mathematics. The terms management science and decision science are used as synonyms. Operation research is concerned with determining the maximum or minimum of some real-world objective. Originating in military efforts before World War II, its techniques have grown to concern problems in a variety of industries, nearly all of these techniques involve the construction of mathematical models that attempt to describe the system. Because of the computational and statistical nature of most of these fields, OR has ties to computer science.
In the decades after the two wars, the techniques were more widely applied to problems in business, industry. Early work in research was carried out by individuals such as Charles Babbage. Percy Bridgman brought operational research to bear on problems in physics in the 1920s, modern operational research originated at the Bawdsey Research Station in the UK in 1937 and was the result of an initiative of the stations superintendent, A. P. Rowe. Rowe conceived the idea as a means to analyse and improve the working of the UKs early warning radar system, initially, he analysed the operating of the radar equipment and its communication networks, expanding to include the operating personnels behaviour. This revealed unappreciated limitations of the CH network and allowed action to be taken. Scientists in the United Kingdom including Patrick Blackett, Cecil Gordon, Solly Zuckerman, other names for it included operational analysis and quantitative management. During the Second World War close to 1,000 men and women in Britain were engaged in operational research, about 200 operational research scientists worked for the British Army.
Patrick Blackett worked for different organizations during the war. In 1941, Blackett moved from the RAE to the Navy, after first working with RAF Coastal Command, in 1941, blacketts team at Coastal Commands Operational Research Section included two future Nobel prize winners and many other people who went on to be pre-eminent in their fields. They undertook a number of analyses that aided the war effort. Convoys travel at the speed of the slowest member, so small convoys can travel faster and it was argued that small convoys would be harder for German U-boats to detect
Economics is a social science concerned chiefly with description and analysis of the production and consumption of goods and services according to the Merriam-Webster Dictionary. Economics focuses on the behaviour and interactions of economic agents and how economies work, consistent with this focus, textbooks often distinguish between microeconomics and macroeconomics. Microeconomics examines the behaviour of elements in the economy, including individual agents and markets, their interactions. Individual agents may include, for example, firms, macroeconomics analyzes the entire economy and issues affecting it, including unemployment of resources, economic growth, and the public policies that address these issues. Economic analysis can be applied throughout society, as in business, health care, Economic analyses may be applied to such diverse subjects as crime, the family, politics, social institutions, war and the environment. At the turn of the 21st century, the domain of economics in the social sciences has been described as economic imperialism.
The ultimate goal of economics is to improve the conditions of people in their everyday life. There are a variety of definitions of economics. Some of the differences may reflect evolving views of the subject or different views among economists, to supply the state or commonwealth with a revenue for the publick services. Say, distinguishing the subject from its uses, defines it as the science of production, distribution. On the satirical side, Thomas Carlyle coined the dismal science as an epithet for classical economics, in this context and it enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. He affirmed that previous economists have usually centred their studies on the analysis of wealth, how wealth is created and consumed, but he said that economics can be used to study other things, such as war, that are outside its usual focus. This is because war has as the goal winning it, generates both cost and benefits, resources are used to attain the goal.
If the war is not winnable or if the costs outweigh the benefits. Some subsequent comments criticized the definition as overly broad in failing to limit its subject matter to analysis of markets, there are other criticisms as well, such as in scarcity not accounting for the macroeconomics of high unemployment. The same source reviews a range of included in principles of economics textbooks. Among economists more generally, it argues that a particular definition presented may reflect the direction toward which the author believes economics is evolving, microeconomics examines how entities, forming a market structure, interact within a market to create a market system
Cultural economics is the branch of economics that studies the relation of culture to economic outcomes. Here, culture is defined by shared beliefs and preferences of respective groups, programmatic issues include whether and how much culture matters as to economic outcomes and what its relation is to institutions. Applications include the study of religion, social norms, social identity, beliefs in redistributive justice, hatred, terrorism and the culture of economics. Methods include case studies and theoretical and empirical modeling of cultural transmission within, in 2013 Said E. Dawlabani added the value systems approach to the cultural emergence aspect of macroeconomics. Cultural economics develops from how wants and tastes are formed in society and this is partly due to nurture aspects, or what type of environment one is raised in, as it is the internalization of one’s upbringing that shapes their future wants and tastes. Acquired tastes can be thought of as an example of this, a key thought area that separates the development of cultural economics from traditional economics is a difference in how individuals arrive at their decisions.
These trajectories consist of regularities, which have built up throughout the years. Economists have started to look at cultural economics with a thinking approach. In this approach, the economy and culture are each viewed as a system where “interaction and feedback effects were acknowledged, and where in particular the dynamic were made explicit. ”In this sense, the interdependencies of culture. The book explores the intersections of multiple disciplines such as development, organizational behavior. The advancing pace of new technology is transforming how the public consumes and shares culture, the cultural economic field has seen great growth with the advent of online social networking which has created productivity improvements in how culture is consumed. New technologies have lead to cultural convergence where all kinds of culture can be accessed on a single device, throughout their upbringing, younger persons of the current generation are consuming culture faster than their parents ever did, and through new mediums.
The smartphone is an example of this where books, talk, artwork. This field has seen growth through the advent of new economic studies that have put on a cultural lens. For example, a recent study on Europeans living with their families into adulthood was conducted by Paola Sapienza, the study found that those of Southern European descent tend to live at home with their families longer than those of Northern European descent. Sapienzas work is an example of how the growth of economics is beginning to spread across the field. An area that cultural economics has a presence in is sustainable development. Sustainable development has been defined as “…development that meets the needs of the present without compromising the ability of future generations to meet their own needs…”, culture plays an important role in this as it can determine how people view preparing for these future generations
Institutional economics focuses on understanding the role of the evolutionary process and the role of institutions in shaping economic behaviour. Its original focus lay in Thorstein Veblens instinct-oriented dichotomy between technology on the one side and the sphere of society on the other. Its name and core elements trace back to a 1919 American Economic Review article by Walton H. Hamilton, Institutional economics emphasizes a broader study of institutions and views markets as a result of the complex interaction of these various institutions. The earlier tradition continues today as a leading heterodox approach to economics, a significant variant is the new institutional economics from the 20th century, which integrates developments of neoclassical economics into the analysis. Law and economics has been a theme since the publication of the Legal Foundations of Capitalism by John R. Commons in 1924. Since then, there is heated debate on the role of law on economic growth, Behavioral economics is another hallmark of institutional economics based on what is known about psychology and cognitive science, rather than simple assumptions of economic behavior.
Institutional economics focuses on learning, bounded rationality, and evolution and it was a central part of American economics in the first part of the 20th century, including such famous but diverse economists as Thorstein Veblen, Wesley Mitchell, and John R. Commons. Traditional institutionalism rejects the reduction of institutions to simply tastes, tastes, along with expectations of the future and motivations, not only determine the nature of institutions but are limited and shaped by them. If people live and work in institutions on a regular basis, some of the authors associated with this school include Robert H. Wright Mills was highly influenced by the institutionalist approach in his major studies. Thorstein Veblen wrote his first and most influential book while he was at the University of Chicago, in it he analyzed the motivation in capitalism to conspicuously consume their riches as a way of demonstrating success. Conspicuous leisure was another focus of Veblens critique, the concept of conspicuous consumption was in direct contradiction to the neoclassical view that capitalism was efficient.
Output and technological advance are restricted by business practices and the creation of monopolies, businesses protect their existing capital investments and employ excessive credit, leading to depressions and increasing military expenditure and war through business control of political power. These two books, focusing on criticism first of consumerism, and second of profiteering, did not advocate change, Veblen remains a leading critic, which cautions against the excesses of the American way. Thorstein Veblen wrote in 1898 an article entitled Why is Economics Not an Evolutionary Science, John R. Commons came from mid-Western America. Underlying his ideas, consolidated in Institutional Economics was the concept that the economy is a web of relationships between people with diverging interests, there are monopolies, large corporations, labour disputes and fluctuating business cycles. They do however have an interest in resolving these disputes, Commons thought that government should be the mediator between the conflicting groups.
Commons himself devoted much of his time to advisory and mediation work on government boards, Wesley Clair Mitchell was an American economist known for his empirical work on business cycles and for guiding the National Bureau of Economic Research in its first decades. Mitchell’s teachers included economists Thorstein Veblen and J. L. Laughlin, clarence Ayres was the principal thinker of what some has called the Texas school of institutional economics
Natural resource economics
Natural resource economics deals with the supply and allocation of the Earths natural resources. Resource economists study interactions between economic and natural systems, with the goal of developing a sustainable and efficient economy, natural resource economics is a transdisciplinary field of academic research within economics that aims to address the connections and interdependence between human economies and natural ecosystems. Its focus is how to operate an economy within the constraints of earths natural resources. Resource economics brings together and connects different disciplines within the natural and social sciences connected to areas of earth science, human economics. Economic models must be adapted to accommodate the special features of natural resource inputs, the traditional curriculum of natural resource economics emphasized fisheries models, forestry models, and minerals extraction models. In recent years, other resources, notably air, the global climate and policy interest has now moved beyond simply the optimal commercial exploitation of the standard trio of resources to encompass management for other objectives.
For example, natural resources more broadly defined have recreational, as well as commercial values and they may contribute to overall social welfare levels, by their mere existence. The economics and policy area focuses on the aspects of environmental problems. Hotellings rule is a 1931 economic model of non-renewable resource management by Harold Hotelling and it shows that efficient exploitation of a nonrenewable and nonaugmentable resource would, under otherwise stable economic conditions, lead to a depletion of the resource. The rule states that this would lead to a net price or Hotelling rent for it that rose annually at an equal to the rate of interest. Nonaugmentable resources of inorganic materials are uncommon, most resources can be augmented by recycling and by the existence, vogely has stated that the development of a mineral resource occurs in five stages, The current operating margin governed by the proportion of the reserve already depleted. The intensive development margin governed by the trade-off between the necessary investment and quicker realization of revenue.
The extensive development margin in which extraction is begun of known, the technology margin which interacts with the first four stages. The Gray-Hotelling theory is a case, since it covers only Stages 1–3. Furthermore, Hartwicks rule provides insight to the sustainability of welfare in an economy that uses non-renewable resources. The perpetual resource concept is a complex one because the concept of resource is complex and changes with the advent of new technology, new needs and this was the worst case for resource availability, becoming a strategic and critical material. In the longer term, scarcity of tin led to completely substituting aluminum foil for tin foil and polymer lined steel cans. Resources change over time with technology and economics, more efficient recovery leads to a drop in the ore grade needed
Risk tolerance is a crucial factor in personal financial decision making. Risk tolerance is defined as individuals willingness to engage in a financial activity whose outcome is uncertain, Behavioral economics is primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology and microeconomic theory, in so doing, these behavioral models cover a range of concepts, the study of behavioral economics includes how market decisions are made and the mechanisms that drive public choice. The use of the term behavioral economics in U. S. scholarly papers has increased in the past few years, there are three prevalent themes in behavioral finances, People often make decisions based on approximate rules of thumb and not strict logic. Framing, The collection of anecdotes and stereotypes that make up the mental emotional filters individuals rely on to understand and respond to events, Market inefficiencies, These include mis-pricings and non-rational decision making.
During the classical period of economics, microeconomics was closely linked to psychology and they developed the concept of homo economicus, whose psychology was fundamentally rational. However, many important neo-classical economists employed more sophisticated psychological explanations, including Francis Edgeworth, Vilfredo Pareto, Economic psychology emerged in the 20th century in the works of Gabriel Tarde, George Katona, and Laszlo Garai. Expected utility and discounted utility models began to gain acceptance, generating testable hypotheses about decision-making given uncertainty and intertemporal consumption, in the 1960s cognitive psychology began to shed more light on the brain as an information processing device. In mathematical psychology, there is a longstanding interest in the transitivity of preference, prospect theory has two stages, an editing stage and an evaluation stage. In the editing stage, risky situations are simplified using various heuristics of choice, outcomes are compared to the reference point and classified as gains if greater than the reference point and losses if less than the reference point.
Loss aversion, Losses bite more than equivalent gains, in their 1979 paper published in Econometrica and Tversky found the median coefficient of loss aversion to be about 2.25, i. e. losses bite about 2.25 times more than equivalent gains. Prospect theory is able to explain everything that the two main existing decision theories—expected utility theory and rank dependent utility theory—can explain, prospect theory has been used to explain a range of phenomena that existing decision theories have great difficulty in explaining. These include backward bending labor supply curves, asymmetric price elasticities, tax evasion, co-movement of stock prices and consumption, in 1992, in the Journal of Risk and Uncertainty and Tversky gave their revised account of prospect theory that they called cumulative prospect theory. The new theory eliminated the editing phase in prospect theory and focused just on the evaluation phase and its main feature was that it allowed for non-linear probability weighting in a cumulative manner, which was originally suggested in John Quiggins rank dependent utility theory.
Psychological traits such as overconfidence, projection bias, and the effects of limited attention are now part of the theory, Behavioral economics has been applied to intertemporal choice. Intertemporal choice is defined as making a decision and having the effects of such decision happening in a different time, hyperbolic discounting describes the tendency to discount outcomes in the near future more than for outcomes in the far future. Other branches of behavioral economics enrich the model of the utility function without implying inconsistency in preferences, ernst Fehr, Armin Falk, and Matthew Rabin studied fairness, inequity aversion, and reciprocal altruism, weakening the neoclassical assumption of perfect selfishness. This work is particularly applicable to wage setting, Behavioral economics caught on among the general public with the success of books such as Dan Arielys Predictably Irrational
Service economy can refer to one or both of two recent economic developments, The increased importance of the service sector in industrialized economies. The current list of Fortune 500 companies contains more service companies, the relative importance of service in a product offering. The service economy in developing countries is concentrated in financial services, retail, human services, information technology. Products today have a service component than in previous decades. In the management literature this is referred to as the servitization of products or a product-service system, virtually every product today has a service component to it. The old dichotomy between product and service has replaced by a service-product continuum. Many products are being transformed into services, for example, IBM treats its business as a service business. Although it still manufactures computers, it sees the physical goods as a part of the business solutions industry. They have found that the elasticity of demand for business solutions is much less than for hardware.
There has been a shift to a subscription pricing model. Rather than receiving a payment for a piece of manufactured equipment. Full cost accounting and most accounting reform and monetary reform measures are thought to be impossible to achieve without a good model of the service economy. g. Meat inspection is a service that is assumed within a product price, products are purchased for their assumed reliability in some known process. That is, paying for the safe and proper disposal when you pay for the product and those who advocate it are concerned with the phases of product lifecycle and the comprehensive outcome of the whole production process. It is considered a pre-requisite to a service economy interpretation of commodity. It is often applied to paint and other goods that become toxic waste if not disposed of properly and it is most familiar as the container deposit charged for a deposit bottle. One pays a fee to buy the bottle, separately from the fee to buy what it contains, if one returns the bottle, the fee is returned, and the supplier must return the bottle for re-use or recycling.
If not, one has paid the fee, and presumably this can pay for landfill or litter control measures that dispose of diapers or a broken bottle
Labour economics seeks to understand the functioning and dynamics of the markets for wage labour. Labour markets or job markets function through the interaction of workers and employers, Labour economics looks at the suppliers of labour services and the demanders of labour services, and attempts to understand the resulting pattern of wages and income. In economics, labour is a measure of the work done by human beings and it is conventionally contrasted with such other factors of production as land and capital. There are theories which have developed a concept called human capital, there are two sides to labour economics. Labour economics can generally be seen as the application of microeconomic or macroeconomic techniques to the labour market, microeconomic techniques study the role of individuals and individual firms in the labour market. Macroeconomic techniques look at the interrelations between the market, the goods market, the money market, and the foreign trade market. It looks at how these interactions influence macro variables such as employment levels, participation rates, aggregate income, the labour force is defined as the number of people of working age, who are either employed or actively looking for work.
The participation rate is the number of people in the force divided by the size of the adult civilian noninstitutional population. The unemployment level is defined as the labour force minus the number of people currently employed, the unemployment rate is defined as the level of unemployment divided by the labour force. The employment rate is defined as the number of people currently employed divided by the adult population, in these statistics, self-employed people are counted as employed. Variables like employment level, unemployment level, labour force, and they can be contrasted with flow variables which measure a quantity over a duration of time. Changes in the force are due to flow variables such as natural population growth, net immigration, new entrants. Technological advancement often reduces frictional unemployment, for example, internet search engines have reduced the cost, structural unemployment – This reflects a mismatch between the skills and other attributes of the labour force and those demanded by employers.
The process of globalization has contributed to changes in labour markets. Natural rate of unemployment – This is the summation of frictional and structural unemployment and it is the lowest rate of unemployment that a stable economy can expect to achieve, given that some frictional and structural unemployment is inevitable. Economists do not agree on the level of the rate, with estimates ranging from 1% to 5%. The estimated rate varies from country to country and from time to time, demand deficient unemployment – In Keynesian economics, any level of unemployment beyond the natural rate is probably due to insufficient goods demand in the overall economy. During a recession, aggregate expenditure is deficient causing the underutilisation of inputs, neoclassical economists view the labour market as similar to other markets in that the forces of supply and demand jointly determine price and quantity
Agronomics was a branch of economics that specifically dealt with land usage. It focused on maximizing the crop yield while maintaining a good soil ecosystem, throughout the 20th century the discipline expanded and the current scope of the discipline is much broader. Agricultural economics today includes a variety of applied areas, having considerable overlap with conventional economics, Agricultural economists have made substantial contributions to research in economics, development economics, and environmental economics. Agricultural economics influences food policy, agricultural policy, and environmental policy, Economics has been defined as the study of resource allocation under scarcity. Agronomics, or the application of methods to optimizing the decisions made by agricultural producers. The field of economics can be traced out to works on land economics. Henry Charles Taylor was the greatest contributor with the establishment of the Department of Agricultural Economics at Wisconsin in 1909, another contributor,1979 Nobel Economics Prize winner Theodore Schultz, was among the first to examine development economics as a problem related directly to agriculture.
The discipline was closely linked to applications of mathematical statistics and made early. The farm sector is frequently cited as a example of the perfect competition economic paradigm. In Asia, agricultural economics was offered first by the University of the Philippines Los Baños Department of Agricultural Economics in 1919, in addition to economists long-standing emphasis on the effects of prices and incomes, researchers in this field have studied how information and quality attributes influence consumer behavior. Agricultural economics research has addressed diminishing returns in agricultural production, as well as farmers costs, much research has applied economic theory to farm-level decisions. Development economics is concerned with the improvement of living conditions in low-income countries. The International Association of Agricultural Economists is a professional association. The association publishes the journal Agricultural Economics, there is a European Association of Agricultural Economists, an African Association of Agricultural Economists and an Australian Agricultural and Resource Economics Society.
Substantial work in agricultural economics internationally is conducted by the International Food Policy Research Institute, the AAEA publishes the American Journal of Agricultural Economics and Applied Economic Perspectives and Policy. Careers in agricultural economics require at least a degree. A2011 study by the Georgetown Center on Education and the Workforce rated agricultural economics tied for 8th out of 171 fields in terms of employability, Robert E. and Prabhu Pingali. Agrarian law Agrarian reform Agribusiness Agricultural value chain C. S, agency for International Development, Bureau for Economic Growth and Trade U. S
Political economy is a term used for studying production and trade, and their relations with law and government, as well as with the distribution of national income and wealth. Political economy originated in moral philosophy and it was developed in the 18th century as the study of the economies of states, or polities, hence the term political economy. In the late 19th century, the term came to replace political economy. Earlier, William Stanley Jevons, a proponent of mathematical methods applied to the subject, advocated economics for brevity and it is available as an area of study in certain colleges and universities. Originally, political economy meant the study of the conditions under which production or consumption within limited parameters was organized in nation-states, in that way, political economy expanded the emphasis of economics, which comes from the Greek oikos and nomos. Thus, political economy was meant to express the laws of production of wealth at the state level, the phrase économie politique first appeared in France in 1615 with the well-known book by Antoine de Montchrétien, Traité de l’economie politique.
The French physiocrats, along with Adam Smith, John Stuart Mill, David Ricardo, Henry George, the worlds first professorship in political economy was established in 1754 at the University of Naples Federico II in southern Italy. The Neapolitan philosopher Antonio Genovesi was the first tenured professor, in 1763, Joseph von Sonnenfels was appointed a Political Economy chair at the University of Vienna, Austria. Thomas Malthus, in 1805, became Englands first professor of economy, at the East India Company College, Haileybury. This left the class of 1998 as the last to be graduated with a Master of Arts in Political Economy. In the United States, political economy first was taught at the College of William and Mary, an early and continuing focus of that research program is what came to be called constitutional political economy. Other traditional topics include analysis of public policy issues as economic regulation, rent-seeking, market protection, institutional corruption. From the mid-1990s, the field has expanded, in part aided by new data sets that allow tests of hypotheses on comparative economic systems.
New political economy may treat economic ideologies as the phenomenon to explain, Charles S. Maier suggests that a political economy approach interrogates economic doctrines to disclose their sociological and political premises. In sum, regards economic ideas and behavior not as frameworks for analysis and this approach informs Andrew Gambles The Free Economy and the Strong State, and Colin Hays The Political Economy of New Labour. It informs much work published in New Political Economy, a journal founded by Sheffield University scholars in 1996. International political economy is a field comprising approaches to the actions of various actors. They are associated with the journal The Review of International Political Economy, there is a more critical school of IPE, inspired by thinkers such as Antonio Gramsci and Karl Polanyi, two major figures are Matthew Watson and Robert W. Cox