Eötvös Loránd University, Department of Econonomics
1117 Budapest, Pázmány Péter sétány 1/a

Political economy

Course objectives:
Students should learn how methods of Economics can be used to analyse political phenomena. They should also practice their writing and quantitative skills. Students should acquire a realistic understanding of actions of actors in the sphere of politics and how institutions affect them. Didactically, students should be able to understand textbook chapters in English. Upon completing the course, students should be able compare the advantages and disadvantages of state and market, they should understand government failures as well as market failures. At their workplace, they should be able to productively work together with politicians and people with degrees in political science.

Topics covered:
We start by an introduction, a short excursion on the term "Political Economy" and Arrow's Impossibility theorem and what it implies. We continue by presenting voting mechanisms, discussing Downs' model and multiparty competition and the different solutions to the paradox of voting.
Thereafter we present models of rent seeking, bureaucracy and dictatorship, followed by a few applications like the links between macroeconomic policies and political competition, lobbying and theories and empirical results about the size of the state.

Political economy downloadable syllabus

Political economy downloadable slides

Political economy downloadable handouts

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