Political Economy (ECO106)

At the end of the course students will have learned two things: 1) key theories of economic growth and their track record in the policy world; 2) effects that political institutions have on politicians’ implementation of economists’ recommendations. A combination of these perspectives will endow students with a more sophisticated understanding of the reason why economic growth has been elusive outside a handful of countries (to borrow a phrase from the course textbook) and of the challenges as well opportunities that lie ahead.

• Analyze key theories on Economic Growth, list their assumptions, empirical predictions and real-world effects.
• Model consequences of political institutions (electoral systems and governing rules) as agendasetting tools of economic policy.
• Identify consequences of social conditions (corruption, income inequality, demographic transition) for economic growth.
• Identify patterns and consequences of economic policies (foreign aid, domestic aid to industries, anti-corruption measures, income redistribution, etc.).
• Work in groups, facing time constraints.
• Present and defend discussion results in a seminar setting.