Political Economy: Success or Failure?

Political Economy: Success or Failure?peated open-ended interactions that may, under favorable conditions, induce individuals to contribute.Most importantly, the government may force individuals to participate by imposing taxes.The fundamental public good problem was later applied to resources and named the "tragedy of the commons" (Hardin 1968, Ostrom, Gardner andWalker 1994).Since then, the conditions under which the supply of public goods is likely to arise has been studied intensively, most importantly by Ostrom (1990), who collected a large data set referring to many different situations involving public goods.-New Institutional Economics, which originated in Coase's (1937) question of why firms exist.Other important contributions are North (1981), who analysed