“Inequality can foster political violence. That’s not a great environment for people to invest and economic growth can suffer as a result”

Awarded the 15th BBVA Frontiers of Knowledge Award in Economics, Torsten Persson explains in this interview how political institutions shape economic development and the stability of democracies. Drawing on his joint research with Timothy Besley, he describes how electoral rules, party systems, and government structures influence the incentives of policymakers. His analysis offers an essential perspective for understanding today’s challenges in governance and policy design.

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.