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9780199261857

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`Review from previous edition Kaushik Basu, in this book, proposes an inclusive approach to institutions and, furthermore, he offers some starting points for this research agenda. This is accomplished by Basu's lucid writing style and his ability in constructing illuminating examples that engage his readers. ... I strongly recommend a careful reading of this excellent book' Francesco De Sinopoli, University of Rochester, Social Choice and Welfare `The intelligence and clarity of the author can never be faulted. Ideas are at the forefront, not technique.' Tyler Cowen, George Mason University, Economics and Philosophy `...the book is well written and both interesting and convincing.' Journal of Peace Research `Overall, the book is well written and both interesting and convincing.' Journal of Peace Research

Basu covers everything from game theory to norms to the foundations of economics to the nature of the state. The question remains whether it fits the second category of an Ah-Ha book, and partly it does. Here we have a very smart economist, who knows all the standard results of his discipline, thinking very hard about political economy and government, and willing to entertain speculative notions. He does come up with something. Tyler Cowen, Economics and Philosophy, 2002

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Kaushik Basu is Professor of Economics and holds the C. Marks Chair in the Department of Economics at Cornell University. He has been Visiting Professor at the Department of Economics, Princeton University (1989-91), Member, Institute for Advanced Study, Princeton (1985-6), and Professor, Delhi School of Economics (1985-94). He received his Ph.D. from the London School of Economics on choice theory and welfare economics, and has published extensively in the areas of game theory, development economics, and industrial organization. His books include Analytical Development Economics: The Less Developed Economy Revisited (MIT Press).

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