“When there is a single party in government policy is economically efficient, but the benefits are directed to a subset of the population”

Awarded the 15th BBVA Frontiers of Knowledge Award in Economics, Guido Tabellini analyzes in this interview how institutions, social norms, and culture influence countries’ economic performance. Drawing on his pioneering work in political economy, he explains how history and shared values shape trust, cooperation, and public decision-making. His reflections show how understanding these cultural roots is essential for designing effective policies and strengthening the quality of contemporary democracies.

The BBVA Foundation Frontiers of Knowledge Award in Economics, Finance and Management has gone in this fifteenth edition to Timothy Besley (London School of Economics), Torsten Persson (Institute of International Economic Studies, Stockholm University) and Guido Tabellini (Bocconi University,) for “illuminating the connections between the economic and political worlds” and “transforming the field of political economy,” in the words of the committee’s citation.