Political Economy and Public Goods

Political economy studies how politics and economics influence each other, shaping policies that affect society. In the context of behavioral development economics, it examines how people’s behaviors, decisions, and social interactions impact economic outcomes and public goods—like clean air, education, and infrastructure—which benefit everyone. Public goods are essential for community well-being but often underfunded since individuals may rely on others to contribute. Understanding these dynamics helps shape effective policies and encourages cooperation among citizens to ensure the provision and maintenance of resources that support collective well-being.