Course 2025-2026 a.y.

The course examines how economic mechanisms and political dynamics interact to shape policy choices. Through an interdisciplinary approach, it introduces the main analytical tools used to understand policy design, political incentives, and institutional constraints. The topics covered include:

• Lobbying and special interests
• Corruption
• Media and social media
• Inequality a
• Market power
• Behavioral economics
• Externalities
• Discrimination
• Conflicts

By the end of the course, students will be able to:

• Explain how economic incentives and political institutions jointly shape public policy.
• Describe how lobbying, special interests, and corruption influence policy outcomes and institutional effectiveness.
• Identify the mechanisms through which media and social media affect political behavior, information quality, and democratic processes.
• Discuss the economic foundations of inequality, and its implications for policy design.
• Illustrate how externalities arise and how regulation can address environmental and innovation-related challenges.
• Describe the main forms and empirical evidence of discrimination and their consequences for social and economic outcomes.
• Analyze the economic and political drivers of conflict.

By the end of the course, students will be able to:

·       Analyze policy choices using the main theoretical frameworks of economics and political economy.

·       Evaluate empirical research and interpret evidence from papers to assess policy effectiveness.

·       Assess how political incentives, institutional constraints, and social preferences influence economic policy decisions.

·       Compare alternative policy instruments and weigh their trade-offs in terms of efficiency, equity, and feasibility.

·       Develop evidence-based arguments for or against specific policy proposals.

·       Apply behavioral and economic reasoning to real-world policy problems, including inequality, market power, and externalities.

·       Identify patterns of discrimination, corruption, or misinformation using empirical indicators and case studies.

• Lectures
• Collaborative Works / Assignments

The learning experience of this course includes face-to-face lectures by the instructor, complemented by in-class discussion of readings and policy-relevant examples. In addition, students are required to prepare one group presentation on a topic related to the course (e.g. an academic paper, a policy case, or an empirical study).

The aim of the presentations is to foster the critical evaluation of empirical research and policy arguments, and to help students connect theoretical concepts to real-world issues. Presentations are followed by class discussion, allowing students to practice formulating and defending their views, engage with alternative perspectives, and develop their analytical and critical-thinking skills on current economic and political challenges.

Student performance will be assessed through a combination of a written exam and a group presentation.

Written exam (85%)
The written exam evaluates students’ ability to understand and explain the concepts covered in the course, apply analytical frameworks from economics and political economy to real-world policy problems, and critically interpret empirical evidence. The exam format will be designed to assess both conceptual understanding and the capacity to reason clearly about policy choices and political dynamics.

Group presentation (15%)
Students will work in small groups to prepare a presentation on a topic related to the course, such as the discussion of an academic paper, a policy case, or an empirical study. The goal of the presentation is to develop students’ ability to critically evaluate research, connect theoretical concepts to contemporary policy debates, and communicate their arguments effectively. Presentations will also promote teamwork and discussion of alternative perspectives.

Teaching materials will be announced before the start of the course and made available on the Blackboard platform. The instructor will provide the required papers, reading lists, and any additional materials necessary to support class discussions, group work, and exam preparation.