The past and future impact of behavioral economics in the field of political economy is assessed. It is argued that politician leaders operate in an intensely competition environment where the framework of rational choice is compelling. In contrast, rational choice is less compelling when...

To explain why some countries are rich and others poor, I provide a brief overview of A Study in the Theory of Economic Evolution that Trygve Haavelmo published in 1954, before I elaborate on some features inspired by it. I incorporate grabbing activities into a dynamic development model,...

Destructive creativity implies that parasites become more efficient in rent extraction. We focus on destructive creativity in situations where parasites live on rents extracted from the producers. A higher parasitic strength implies that the waste associated with rent seeking increases, and in...