Abstract
Politics is the area in which the shaping of economic policy is developed and most of the relevant decisions are taken. Different political institutions shape different economic institutions, resulting in winners and losers and, therefore, representing a different balance of forces. Ιn this context, this chapter emphasizes the need to analyse the importance of political function in shaping economic policy, examining, in particular, the role of pressure and elite groups, the importance of multi-level governance, networks, partnerships and the agent-based theory. Furthermore, we highlight the concepts of diffusion or coercive practices between countries, disruptive technologies and cultural background as factors that play a key role in forming and changing institutions and policy-making. Finally, the behavioural approach to policy formulation is considered.
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Petrakis, P.E., Valsamis, D.G., Kafka, K.I. (2020). The Determinants of Economic Policy Formation. In: Economic Growth and Development Policy . Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-43181-5_5
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