Microeconomic Policy

Microeconomic Policy

A New Perspective

Clem Tisdell and Keith Hartley

This thoroughly accessible textbook shows students how microeconomic theory can be used and applied to major issues of public policy. In this way, it will improve their understanding of both microeconomic theory and policy and also develop their ability to critically assess them. Clem Tisdell and Keith Hartley have expanded upon their previous successful work on microeconomics. As a result, this new book is considerably updated with substantial chapter revisions, as well as new chapters dealing with business management, ownership, environmental issues, public choice, defence, conflict and terrorism.

Preface

Clem Tisdell and Keith Hartley

Subjects: economics and finance, industrial economics

Extract

This book has its genesis in Micro-Economic Policy which was authored by K. Hartley and C. Tisdell and published in the 1980s by John Wiley. This previous book was widely used internationally as a textbook, and several users of it urged us to bring out a new edition. We were delighted when Edward Elgar expressed his interest in this enterprise. It took us, however, much longer to do this than expected. Furthermore, the changes turned out to be so substantial that it became evident that this book had to be regarded as a new book, even though it retains several significant features of the previous book. Microeconomic Policy: A New Perspective has involved substantial additions to and revision of the earlier work so as to reflect changes in the direction and substance of microeconomic policy in recent decades as well as new developments in microeconomic analysis. The earlier book included policy implications of neoclassical microeconomics as well as extensions to take account of such factors as knowledge limitations, search, the costs of decision-making, principal–agent problems (features often associated with the New Institutional Economics) and aspects of the theory of games. While this emphasis has been retained and strengthened, greater consideration is given to the relevance of other approaches to microeconomic thought such as those associated with traditional institutional economics, behavioural economics and the Austrian School of Economics. Very often microeconomic policies have to be considered from varied perspectives. For example, depending upon the policy issue being considered,...