| Unit name | Political Economics |
|---|---|
| Unit code | EFIM30010 |
| Credit points | 20 |
| Level of study | H/6 |
| Teaching block(s) |
Teaching Block 1 (weeks 1 - 12) |
| Unit director | Professor. Giovannoni |
| Open unit status | Not open |
| Pre-requisites |
ECON21133 – Intermediate Microeconomics & ECON22134 – Intermediate Macroeconomics |
| Co-requisites |
None |
| School/department | School of Economics, Finance and Management |
| Faculty | Faculty of Social Sciences and Law |
Political Economics is the study of the effect of political institution on economic outcomes and vice versa. The course aims to introduce the students to the basic tools that allow to study these issues and to apply these models to certain specific questions. For example: what effect do electoral rules have on government economic policy? How does wealth inequality affect the choice of constitutional institutions? The first block deals with the basic modelling tools. The second block of the unit introduces specific applications.
Topics covered may include: • Preferences and Institutions. • Electoral Competition. • Agency issues in politics. • Partisan politicians. • General-Interest politics. • Special-Interest politics. • Institutions and accountability. • Political regimes. • Constitutional Design.
At the end of the course students should have a good understanding of issues at the frontier of modern political economics. Students will be able to :
•Demonstrate a good understanding of the basic models used in modern political economics •Apply appropriately selected models to the analysis of a variety of applications in political economy such as:
oThe effect of electoral rules on government policies oThe effect of wealth inequalities on the choice of constitutional institutions oGeneral and special interest politics oPartisan politicians.
9 two-hour lectures and 9 one hour tutorials
Unseen 3 hour written exam in June. All of the learning outcomes above will be assessed
Formative assessment (2 essays)
There is one key text:
T. Persson and G. Tabellini Political Economics: Explaining Economic Policy, MIT Press.
Additional readings will be provided.
