Macroeconomic concepts and theories are among the most valuable for policymakers. Yet up to now, there has been a wide gap between undergraduate courses and the professional level at which macroeconomic policy is practiced. In addition, PhD-level textbooks rarely address the needs of a policy...

The authors investigate the theoretical effects of lobbying and pressure group activities on both economic efficiency and on equity. Looking at lobbying as a political activity that takes place alongside production, they find that lobbies may generate economic inefficiency as part of the process...