Ekonomi Politik_pertemuan 3, pendekatan dan teori ekonomi politik

Pertemuan 3: Pendekatan dan Teori Ekonomi Politik

1. Ekonomi Politik Pertemuan 3: Pendekatan dan Teori Ekonomi Politik

2. Outline

3. Interest Group Model: Key Concept: The political process functions as a market , where politicians supply policies (regulations, transfers, public goods). Interest groups (lobbies) are the demanders of these policies, influencing decisions through pressure (monetary or advocacy efforts). Influence Function Model: The policy outcome (x) is determined by a The policy outcome (x) is determined by an influence function (I) , which depends on Pressure (p¹, p²) from different interest groups Exogenous factors (z) Interest group 1 and interest group 2 have a conflicting interest Competition between groups Interest group 1 and interest group 2 have a conflicting interest Pressure (p) is a function of Resources spent (y) → More spending = More influence Group size (n) → Larger groups face free-rider problems , reducing their effectiveness Strategic behavior of interest group, (Utility maximization) Interest groups maximize their utility by choosing how many resource to spend. Interest group decide resource spent while considering the actions of the other group.  

4. Contoh interest group di Indonesia From this To this

5. Konsep Rent Seeking Example: Rent Creation: Bribery for state contracts → A construction firm pays off officials to win an infrastructure project. Buying regulatory favors → A mining company bribes government officials to bypass environmental laws . Rent Seizing: Allocation of SOE contracts to political allies → Government officials give exclusive tenders to politically connected firms. Favoring political cronies in resource extraction rights → Local officials control mining or land-use permits , benefiting their close networks. Rent Extraction: Threatening businesses with regulation unless they "donate" to political campaigns . Selective enforcement of tax laws → A company is audited and fined unless it bribes officials .

6. Praktik Rent Seeking di Indonesia

7. Voting dan kebijakan Publik : Median Voter Theorem (MVT) Definition: MVT states that in a majority-rule system , the candidate or policy closest to the median voter preference will win. Key assumption: Unidimensional political spectrum (left to right, conservative to liberal). Single-peaked voter preferences (each voter has one ideal policy). Majority voting system (winner is decided by 50%+1 votes). Candidates are rational and move toward the center to attract the median voter. Limitation: Assumes One-Dimensional Political Competition In reality, politics is multidimensional (e.g., economic policies, social issues, identity politics). Ignores Voter Turnout & Strategic Voting Not all voters participate equally, and some groups (e.g., interest groups, elites) have disproportionate influence . Fails in Multi-Party Systems In multi-party democracies like Indonesia, vote splitting and coalition-building affect outcomes , making MVT less applicable. Sumber : https://notesonliberty.com/2017/03/20/can-median-voter-theorem-explain-political-polarization/

8. Real World Example and Limitation of MVT Candidate often later adjust to more moderate position to capture median voters