Over the past decade two major intellectual developments (some would call them revolutions) have had a major impact on how economists and policymakers think about the way policies affect economies. The first of these revolutions is associated with a growing body of literature that goes under the name of “public choice.” In 1986 James Buchanan received a Nobel Prize in economics for his seminal contributions to this literature. The second is the less unified, but highly influential, thinking that goes under the name of supply-side economics. Supply-side economics had its major expression in the United States under the Reagan Administration. Its influence has progressively spread to other countries, both developed and developing.

Issues and Country Studies
Editor: A. Premchand