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Dynamic Model of Macroeconomic Populism Policy

Student: Pavlov Nikita

Supervisor: Dmitry A. Veselov

Faculty: Faculty of Economic Sciences

Educational Programme: Economics: Research Programme (Master)

Year of Graduation: 2019

Macroeconomic populism is one of the sharpest and at the same time overlooked problems of modern economic science. Voters’ bounded rationality, which may be considered as one of the most vivid objects of populists’ speculation, have been neglected in existing literature on topic almost completely. Current work addresses this issue by building a simple dynamic model of macroeconomic populism policy which allows for electorate’s bounded rationality. Proposed approach to macroeconomic populism has provided some useful insights regarding, first, the extent of harm caused by the presence of populist party and, second, possible mechanisms of its mitigation.

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