20298 - POLITICAL ECONOMICS - ADVANCED
CLMG - M - IM - MM - AFC - CLEFIN-FINANCE - CLELI - ACME - DES-ESS - EMIT - GIO - ECFIN
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? 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.
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 also apply those tools to more specific issues, such as the control of corruption, intertemporal policies, the political and institutional determinants of growth, the interaction between institutions and social capital.
T. PERSSON, G. TABELLINI, Political Economics: Explaining Economic Policy, MIT Press, Paperback edition, 2000.
- Additional readings are provided at the beginning of the course.