Political Economy

The course is a relatively advanced (i.e. at the beginning graduate level) but essentially self-contained introduction to the methods and some major applications of modern political economy.


? Institutions and ?exogenous? differences in institutions
? At the origin of institutions: From Social Choice to Political Economics
? Median voter models
? Probabilistic voting models
? Agency models of politics: Electoral accountability and career concerns
? Partisan politicians
? Redistributive politics
? Dynamic policy problems with a focus on economic growth.

Prerequisites: The course assumes a good knowledge of macro and microeconomics (especially some growth theory, elementary taxation theory and game theory, including games with asymmetric/incomplete information and the theory of repeated games), of mathematical and statistical methods (especially static and dynamic optimization), and of econometrics (especially familiarity with the issue of causality in econometrics and IV estimation), at the level of the relevant courses offered at IMT.

In addition, students will be asked to read and present some articles along the way as a part of the final exam.