Bachelor
2024/2025
Рolitical Economy
Type:
Elective course (Economics)
Area of studies:
Economics
Delivered by:
Department of Theoretical Economics
Where:
Faculty of Economic Sciences
When:
3 year, 3 module
Mode of studies:
offline
Open to:
students of all HSE University campuses
Instructors:
Kemal Kivanc Akoz
Language:
English
ECTS credits:
3
Course Syllabus
Abstract
Well-functioning economic institutions and sound economic policies lead to better economic performance. Yet, these institutions and policies are not determined in a vacuum. They are affected by and co-evolve with political and legal institutions. Therefore, it's of utmost importance to understand how policy decisions are made, what governs the incentives and constraints of policymakers and how con icts over these decisions are resolved. Political economics is a eld of study devoted to the analysis of political institutions and decision making using the analytical and empirical approaches employed in economics (i.e. rational-choice theory, game-theory, econometrics). This course reviews key contributions in the eld of political economics, both theoretical and empirical. First, we will focus on studies that illustrate the key approaches in the study of democratic politics, elections, and policy choice. Then we will delve into dierent forms of non-electoral political bargaining. In this part of the course, we will study the broader context in which political and economic decisions are made. In other words, we will learn how political institutions matter for economic performance by setting the playing eld for economic interactions and in uencing equilibrium policy choices. We will see a formal framework to explain why some nations experience successful democratic transitions while others fail to do so. Finally, we will also get acquainted with some of the main issues in non-electoral politics such as civil conicts, corruption and factors in uencing state capacity as another determinant of economic and political outcomes.
Learning Objectives
- to get acquainted with some of the main issues in non-electoral politics such as civil conflicts, corruption and factors influencing state capacity as another determinant of economic and political outcomes
Expected Learning Outcomes
- understand how policy decisions are made, what governs the incentives and constraints of policymakers and how conflicts over these decisions are resolved
Course Contents
- Section 1. Introduction to Political Economy
- Section 2. Electoral politics. (a) Voting and Aggregation: Arrow's Impossibility Theorem, Condorcet Rule, Majoritarian Rule and its implications (Median-Voter theorem, redistributive taxation).
- Section 2. (b) Electoral Competition, i. Policy Platforms: Downsian Policy Convergence Theorem, and non-convergence.
- Section 2. (b) ii. Election Campaigns, Media and Incumbency
- Section 2. (b) iii. Lobbying
- Section 2. (b) iv. Vote buying, electoral fraud and voter intimidation
- Section 3. Public Policy. (a) Policy under the shadow of re-election: i. Political accountability
- Section 3. (a). ii. Targeted public good provision
- Section 3. (a). iii. White Elephants
- Section 3. (a). iv. Electoral Cycles and Commitment
- Section 3. (b) Composition and Quality of Politicians
- Section 3. (c) Corruption
- Section 4. Non-Electoral Political Bargaining. (a) Political Institutions. i. Political rule as coalitions
- Section 4. (a). ii. Political transitions
- Section 4. (a). iii. State capacity
- Section 4. (b) Civil Wars and Ethnic Con ict
Interim Assessment
- 2024/2025 3rd module0.15 * Attendance and Quizzes + 0.25 * Essay + 0.6 * Final Exam
Bibliography
Recommended Core Bibliography
- Lee, D. S., Moretti, E., & Butler, M. J. (2004). Do Voters Affect or Elect Policies? Evidence from the U. S. House. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.F29E47CE
Recommended Additional Bibliography
- Raghabendra Chattopadhyay, & Esther Duflo. (2004). Women as policy makers: Evidence from a randomized policy experiment in india. Framed Field Experiments. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.feb.framed.00224