Introduction to political economy

This clear and concise introduction to resource allocation and the normative aspects of economics is by one of the world's leading authorities on the subject. Professor Mishan carefully distinguishes various meanings of the terms political economy, normative economics, welfare economics and allocative economics; he considers the standard allocation rules and the crucial concepts of consumer surplus and rent, which are so important in cost-benefit analysis: and he lucidly resolves the paradoxes of the efficiency criterion. In the final chapters he concludes by assessing both the social worth of radical conservatism, associated with the Chicago School of Economics, and the relevance to social welfare of the modern theory of welfare economics.

The book is highly readable and, without recourse to algebra and any but the simplest of diagrams, the author carries. the student quickly to the heart of the subject. Introduction to Political Economy is essential reading for all students of economics wishing to understand the normative aspects of the subject and for anyone concerned about the relationship between economics and everyday social life.