20298 - POLITICAL ECONOMICS - ADVANCED
CLMG - M - IM - MM - AFC - CLAPI - CLEFIN-FINANCE - CLELI - ACME - DES-ESS - EMIT
Course taught in English
Go to class group/s: 31
The goal of this course is to discuss current topics in political economics. Thus, the idea is to study the formation of economic policy from a positive -rather than a normative- perspective. The course addresses questions such as: what are the political and institutional determinants of fiscal policy and macroeconomic policy in modern democracies? Which features of political institutions are more likely to foster economic development? Why are seemingly inefficient public policies preserved over time? How do political institutions interact with underlying social phenomena? And -more generally- what is the influence of interest groups on economic policies?
The course trains students to understand how policy decisions are made, and how they can be improved. This proves helpful in the analysis and forecast of policy decisions, by market analysts or by professionals working in government or international organizations.
In the first part of the course we cover the main mechanisms through which citizens influence policies, i.e. by voting and by getting organized in interest groups. More specifically, we cover the basic median voter framework, the probabilistic voting model, the citizen-candidate model and some examples of lobbying models. We then look at models of intragenerational and intergenerational redistribution, i.e. (funded) pension systems.
In the second part of the course we apply those tools to more specific issues, such as the effects of institutions and redistribution on economic growth, the interaction between institutions and social capital, the political role of culture and of the mass media.
T. PERSSON, G. TABELLINI, Political Economics: Explaining Economic Policy, MIT Press, 2000, Paperback edition
A. ALESINA, E.L. GLAESER, Fighting Poverty in the US and Europe: A World of Difference, Oxford University Press, 2004, Paperback edition
Additional readings are provided at the beginning of the course.