03568 - Economic Policy

Learning outcomes

• The purpose of the first part is to provide an introduction to Political Economy. Students will realize the importance of economic institutions for economic devolopment and the complexity of economic governance of a market economy in a democratic society.

• The purpose or the second part is to analyze the main changes in the labor markets during in the last forty years.

Course contents

The course is divided in two parts:

• Introduction to Political Economy (Prof. Rovelli, 32 hours)
• The evolution of labor markets during the last forty years (Prof. Lehmann, 18 hours)

First part - (Riccardo Rovelli) Introduction to Political Economy (32 hours)

I – Economic Performance

• How is it measured? Why do not all countries grow? What is the role of geography, culture, institutions and policies?

II – Growth, Development, Sustainability

• Does growth ensure development ? What does “sustainable growth” mean? When is growth unsustainable?

III – Economic Relations and Institutions

• Which are the main types of economic relations between individuals? How do they differ across societies?

• Which institutions are required to support the different economic relations? A brief examinations of the origin, roles and limits of property, money, finance, corporations.
• Which institutions favor growth?

IV – The governance of a market economy

• What is a market economy? What is capitalism? How are they related? Which varieties of capitalism?

• What does governance mean? Why is Rule of Law important? The governance of market failures. Economic governance, social policies, individual rights.

V – Democracy, markets and governance

• What are the economic and social prerequisites of democracy? When do democratic transition take place? Is there a tension between democracy and a market economy?
• How are economic policies decided in a democracy? Which economic models explain political competition and democratic failures?

Second part -(Prof. Hartmut Lehmann) The Evloution of labor markets during the last forty years (18 hours)

1. The neo-classsical model of the labor market: demand and supply
2. Globalization, technological progress and the labor market. The effects of international trade, foreign direct investments and “offshoring” on employment, unemployment and income distribution in developed and less-developed countries, from the Eighties until today.
3. Unemployment and active labor market policies in emerging and transition countries: purposes and evaluation of their effects on individual workers.

Readings/Bibliography

For the first part:

• A list of required readings is published among the "MATERIALI DIDATTICI". All the teaching materials (readings and presentations) is in English.
  

For the second part:

• A list of required readings will be available from:www2.dse.unibo.it/lehmann (password protected).

Teaching methods

For the first part:

• The class will meet 16 times, for two hours each time.
• Students will be encouraged to take part in the debate, and to make reference to all relevant arguments of an historical, social, political or economic nature.

For the second part:

• There will be eight 2-hours lectures.

Assessment methods

The final mark is the sum of points obtained in:

• A first partial written exam, based on6 open questions, that will take place after the end of the first part of the course (max 12 points).
• A second partial written exam, based on 3 open questions, that will take place after the end of the second part of the course (max 9 points).
• A brief final essay (between 2000 / 3000 words, equivalent to 3-4 pages font TNR 12 or similar, single spaced, in Italian or English) on a theme approved by one of the two Instructors before the end of classes, and to be presented in electronic format at least one week before the exam date (appello di esame)(max 11 points)
  

Teaching tools

Required readings (in English) will be collected and made available during the first week of classes.

Lectures will be supported by PC-based presentations.

Prof. Rovelli: Presentations and required readings are available on a DROPBOX directory, reserved for studentsregistered for the course. Students must email the teacher to ask for a link to this directory.

Prof. Lehmann: Power Point presentation and a detailed list of readings will be available from: www2.dse.unibo.it/lehmann (password protected)

Office hours

See the website of Riccardo Rovelli

See the website of Hartmut Lehmann