29.5.2017 - 1.6.2017 - 8th Economics & Finance Conference, London

Pokročilé hledání

5EN502 Ekonomická teorie politiky

Vyučující: Denisa Šustrová
Výuka probíhá v češtině
Rozvrhová akce: Pátek 7:30 – 9:00, RB 207 & Pátek 9:15 – 10:45, SB 240

Course Description, Learning Outcomes and Competences
This course combines selected topics from Political Ekonomy, Public Choice and Economics of Public Sector. Within the course students will learn how methodos of economic analysis can be applied to issues in politics and public sector, including the role and function of government, and governmental decision-making; the intersection between public and private interests; the connection between voters, politicians, and the economy; and the effect and evolution of governmental institutions.

Aims of the Course
The course is intended to:

  • Provide students with knowledge of approaches to study social choice and politics
  • Make students familiar with mainstream research directions in the field of Economics of Public Sector
  • Develop skills in modeling people’s behavior

Course Assessment Methods
The final grade will be calculated based on the grades for three assignments: class participation and the results of successful responses and interventions during classes, term paper and its presentation, and final exam. The topics for the term paper will be announced in one month before the deadline.

Grading policy:

  • Active lecture/seminar participation: 15 %
  • Presentation: 20 %
  • Comment: 20 %
  • Essay 20 %
  • Final Exam: 25 %

Main Textbooks:
Stiglitz, J. E., Economics of the Public Sector (3rd edition), 2000 (cze version – kekebooks page – 5EN502)
Mueller, D., Public Choice (3rd edition), 2003

Additional Readings:
Jha, R., Modern Public Economics, 1998
Persson T., Tabellini, G., Political Economics: Explaining Economic Policy, 2000
Acemoglu, D., Robinson, J., Economic Origins of Dictatorship and Democracy, 2006

Course Content

1. Introduction (Week 1)

Review of Mathematical Tools and Basic Economic Concepts

2. Origins of the State (Week 2—3)

Externalities and Public Goods, Market Failures, Regulation and Deregulation

3. Taxation (Week 4—6)

Efficiency and Consequences, Tax Incidence, Optimal Taxation, Effects on Labor Supply, Savings and Investments, Tax Evasion and Avoidance

4. Public Expenditures (Week 7)

5. Theory of Voting (Week 8—9)

Representative Democracy, Electoral Systems, Voting Rules, Median Voter Model

6. Governance and Bureaucracy (Week 10—11)

Size of Government, Peltzman’s Model, Niskanen’s Model, Weber’s Model

7. Rent-Seeking, Interest Groups and Corruption (Week 12)

8. Authoritarianism and Dictatorship (Week 13)



(Week # and Topic + papers)

2. On Liberty, Of the Liberty of Thought and Discussion – John Stuart Mill
2. Envy: A Theory of Social Behaviour – Man the Envier (3-17); Envy in Language (17-33) – Helmut Schoeck

3. The Economic way of looking at life – Gary S. Becker
3. Envy: A Theory of Social Behaviour – In Praise of Poverty: From Sumptuary Laws to Contempt for the Affluent Society (253-277); Envy as Tax Collector (385-394)- Helmut Schoeck

4. The Firm, the Market, and the Law – R.H. Coase
4. The Problem of Social Cost: What Problem? – Harold Demsetz

5. On Arrow´s Impossibility Theorem – Duncan Black
5. On the Theory of the Centrally Administered Economy: An Analysis of the German Experiment – Walter Eucken

6. On the Rationale of Group Decision-Making – Duncan Black
6. Classical Public Choice and the Failure of Rational Ignorance – Bryan Caplan

7. Economic Models of Interest Groups: An Introductory Survey – William C. Mitchell, Michael C. Munger

8. The Rise and Decline of Nations: Economic Growth, Stagflation, and Social Rigidities (17-74) – Mancur Olson

9. A Reformulation of Voting Theory – W. A. Niskanen
9. Why Does Government Grow? – James M. Buchanan

10. Rent Seeking – Robert D. Tollison
10. Bureaucracy: A Final Perspective – W.A. Niskanen

11. Autocratic, Democratic, and Optimal Government: A Sketch-W. A. Niskanen
11. The Constitution of Economic Policy – James M. Buchanan
11. What Is To Be Done? – Gordon Tullock

12. The Process and Progress of Economics – George J. Stigler
12. The Political Business Cycle – William D. Nordhaus

13. Persuasion, Slack, and Traps: How Can Economists Change the World? – Bryan Caplan
13. Parrot-Talk – Anthony de Jasay