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...Nber working paper series the political economy of ideas on versus interests in policymaking sharun mukand dani rodrik http www org papers w national bureau economic research massachusetts avenue cambridge ma march we gratefully acknowledge discussions with and comments tim besley sumon majumdar debraj ray kenneth shepsle raghul venkatesh provided superb assistance views expressed herein are those authors do not necessarily reflect circulated for discussion comment purposes they have been peer reviewed or subject to review by board directors that accompanies official publications all rights reserved short sections text exceed two paragraphs may be quoted without explicit permission full credit including notice is given source no jel d abstract develop a conceptual framework highlight role as catalyst policy institutional change make an distinction between vested show how feed into each other doing so integrates keynes hayek perspective importance currently more fashionable stigler beck...