POLITICAL ECONOMY

prof. Leonid Polishchuk

This focus of this course is the economic analysis of political processes. Basic topics of the course are the impact of political systems on the economic efficiency, economic pre-conditions of different political regimes, political support or resistance to economic reforms, and incentives and behaviour of economic and political agents.

The following topics are going to be considered during the course:

  • Economic analysis of constitutional systems
  • How to constraint the government discretion - “Leviathan”
  • Credibility of political promises
  • Economic analysis of representative democracy
  • Economic foundations of rule of law
  • Economic and political incentives in a federal state: market-preserving federalism
  • Rent-seeking and production activity
  • Economics of property rights
  • Political economy of post-communist reforms

Course grade: 1/3 midterm exam, 2/3 final exam

Basic Textbooks:

Drazen, A. Political Economy and Macroeconomics. Princeton Univ. Press, 2000.

Persson, T., and G. Tabellini. Political Economics. Explaining Economic Policy. MIT Press, 2000.

Roland, G. Transition and Economics. Politics, Markets, and Firms. MIT Press, 2000.

Additional reading:

Atkinson A., and J. Stiglitz. Lectures on Public Economics. McGraw-Hill, 1980.

Alesina, A., and D. Rodrik. Distributive Politics and Economic Growth. Quarterly Journal of Economics, 1994, pp. 465-490.

Banks, J.S., and E. Hanusushek (Eds). Modern Political Economy. Cambridge Univ. Press, 1995.

Bolton, P., and G. Roland. The Breakup of Nations: A Political Economy Analysis. Quarterly Journal of Economics, 1997, No. 4, pp. 1057-1090.

Brennan, J., and J. Buchanan. The Power to Tax. Analytical Foundations of a Fiscal Constitution. Cambridge Univ. Press, 1980.

Cooter, R.D. The Rule of State Law and the Rule-of-Law State. In: Annual World Bank Conference on Development Economics 1996. World Bank, 1997, pp. 191-238.

Grossman, G.M., and E. Helpman. Protection for Sale. American Economic Review, v. 84, 1994.

Dewatripont, M., I. Jewitt, and J. Tirole. The Economics of Career Concerns, Part II: Application to Missions and Accountability of Government Agencies. Review of Economic Studies, v. 66, 1999, pp. 199-217.

Eggertson, Th. Economic Behavior and Institutions. Cambridge Univ. Press, 1990.

Hart, O., A. Shleifer, and R. Vishny. The Proper Scope of Government: Theory and Applications to Prisons. Quarterly Journal of Economics, 1997, No. 4, pp. 1127-1162.

Person, T., G. Roland, and G. Tabellini. Separation of Power and Political Accountability. Quarterly Journal of Economics, 1997, No. 4, pp. 1163-1202.

Persson, T.G., and G. Tabellini. Representative Democracy and Capital Taxation. Journal of Public Economics, v. 55, No. 1, 1994.

Persson, T.G., and G. Tabellini. The Size and Scope of the Government: Comparative Politics with Rational Politicians. European Economic Review, v. 43, 1999, pp. 699-735.

Phelps, E.S. Political Economy: An Introductory Text. W.W. Norton, 1985.

Polishchuk, L. Input Market Development, Property Rights, and Extra-Market Redistribution. California Institute of Technology, 1996.

Polishchuk, L. Political Economy of Scale and Endogenous Rule of Law. Mimeo, 2000.

Polishchuk, L., and A. Savvateev. Spontaneous Emergence of Property Rights: A Critical Analysis. Paper presented at the conference “Transforming Government in Transition Economies”, Moscow, 1997.

Qian, Y., and G. Roland. Federalism and the Soft Budget Constraint. American Economic Review, 1998, pp. 1143-1162.

Shleifer, A., and R. W. Vishny. Politicians and Firms. Quarterly Journal of Economics, 1994, pp. 995-1025.

Tirole, J. The Internal Organization of Government. Oxford Economic Papers, v. 46, 1994, p. 1-29.

Weimer D.L. (Ed.). The Political Economy of Property Rights. Cambridge Univ. Press, 1997.

Weingast, B. The Political Foundationd of Democracy and the Rule of Law. Mimeo, 1994.

Weingast, B. The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Growth. Journal of Law, Economics, and Organization, 1995, v. 64, pp. 1-31.

Contract Theory

Corruption

Development Economics*

Econometrics-1

Econometrics-2

Econometrics-3

Econometrics-4 (obligotary)

Economic Statistics

Economics of Transition
(elective)

Elements of the Economics
of Transition
*

English

Financial Economics

Game Theory

Growth Theory*

Health Economics*

History of Economic
Thought (obligotary)

International Finance*

Industrial Organization-1*

Industrial Organization-2*

Institutions

International Trade*

Labor Economics*

Macroeconomics-1

Macroeconomics-2

Macroeconomics-3

Macroeconomics-4

Macroeconomics-5

Macroeconomics-6 (obligotary)

Mathematical Statistics

Mathematics for Economists

Microeconomics-1

Microeconomics-2

Microeconomics-3

Microeconomics-4

Microeconomics-5

Microeconomics-6
(obligotary)

Natural Resources

Non-Cooperative Games

Open Macroeconomics*

Political Economy

Probability Theory

Public Economics-1*

Public Economics-2*

Public Finance*

Research Seminar

Russia in global environment:
past and present (rus)

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05.03.02
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