The proposed network will bring together, over a four-year period, leading young European researchers in the field of political economy. The network European researchers in political economy. They will use game theory and contract theory to improve our understanding of political institutions and includes many of the leading European researchers in the field, as well as institutes with strong teaching and seminar programmes, in which the young their implications for economic policy. The network's research agenda will researchers will play an active role. In addition, the involvement of take as its starting point the view of political constitutions as incomplete contracts. Recent research in contract theory by Grossman and CEPR will ensure that the young researchers are also integrated into the Centre's extensive European research networks and so receive invaluable Hart has emphasised how incomplete contracts define an allocation of control rights - the rights of various parties to make decisions in given exposure at an early stage in their careers. The network will employ a circumstances, without defining what those decisions should be. Political variety of procedures to ensure that a wide range of high-quality candidates are recruited to fill the visiting positions funded by the constitutions are typical examples of such incomplete contracts, in which decisions are taken by collective bodies rather than by individuals. network. The network will also lake steps to ensure that the recruitment procedure is as open and transparent as possible. Once the young post Analysing policy choice using the incomplete contract approach will doctoral researchers have been recruited, the network will ensure that the highlight a variety of issues including: which collective body has the researchers receive appropriate guidance in terms of training and career right to make decisions about specific policy instruments; the mechanism development
whereby these collective choices are made, and how political bodies are held accountable for their decisions.
Political and economic theory stresses the important role political coalitions play in influencing specific public policy decisions. These coalitions of individuals or groups can form along many dimensions: region of residence, occupation, sector of work, level of income, etc. The network's research agenda will therefore also examine whether different political institutions create different incentives to form coalitions along particular dimensions. This implies another, indirect, channel whereby political institutions shape actual policy-making.
The network will be coordinated by the European Centre for Advanced Research (ECARE) in Brussels, and will involve six partner institutions. The scientists-in-charge in each institution will comprise the network management committee, which will help ensure effective coordination of the network's activities. The committee will also include representatives from business, and their presence will help foster the involvement of the private sector and the policy community in the activities of the network.
Funding SchemeNET - Research network contracts
106 72 Athens
EC1V 7RR London
106 91 Stockholm
20090 Opera Milano