31512 - Political Economy In Macroeconomics

Academic Year 2014/2015

  • Teaching Mode: In-person learning (entirely or partially)
  • Campus: Bologna
  • Corso: Second cycle degree programme (LM) in Economics (cod. 8408)

Learning outcomes

At the end of the class student has knowledge on using the concepts and tools of the new political economy to analyze current topics in this field. The focus is on the formation of macroeconomic policies from a positive point of view. Student is able to analyze issues such as: - the interaction between politics and economics in shaping macroeconomic policies in modern democracies; - the role of political institutions in the process of economic growth and development; - the effects of elections and changes of policymakers on macroeconomic policy.

Course contents

  1. Introduction
  2. Time inconsistency problem and capital taxation
  3. Collective choices and decision-making mechanisms
  4. General transfers: income redistribution and intergenerational transfers
  5. Special interest politics
  6. Dynamic voting, political equilibrium and economic growth
  7. Innovation and vested interests

Readings/Bibliography

T. Persson and G. Tabellini, (2000), Political economics: explaining economic policy, MIT Press.
A. Drazen (2000), Political economy in macroeconomics, Princeton University Press.

Further readings (namely recent papers) will be suggested in class.

Teaching methods

Class lectures and homeworks

Assessment methods

Assessment methods will include class participation, problem sets, and a final written exam

Office hours

See the website of Giorgio Bellettini