ABSTRACT

This chapter examines the economics department, the entity that makes most of the decisions concerning how both orthodox economics and political economy are taught. The economics department is the main entity determining who is hired, fired or promoted, thus affecting what research in orthodox economics and political economy is undertaken. The chapter explores how economics departments go about the two central tasks they are required to perform: teaching and research. It is revealed that there are strong signals and incentives that often induce academics to prioritise research effort over teaching and curriculum development. The chapter discusses the bias against political economy research. It focuses on the overall regulatory environment that exists in countries such as the United Kingdom and Australia. The chapter also examines how deregulation of student enrolments and greater competition can easily lead to an erosion of the range of degree and subject offerings within non-elite universities, which is where political economy is given some opportunity to develop.