Teaching

In this course, we build on the tools learnt in Microeconomics I (EC1A1) to provide an in-depth analysis of microeconomic theory, as well as applications of the tools of microeconomics to concrete economic problems. The second part of the course builds on the analysis of demand and supply side in EC1A1 to analyse general equilibrium, market failures and the role of government intervention.

This course is concerned with positive political economy and public choice theory applied to the study of political conflicts, democratic institutions and public policy. The course covers the main tools for the study of public choice (rational decision-making theory, game theory, social choice theory) and a number of both theoretical and applied topics, including the empirical study of institutions. This course will cover the main topics in positive political economy and institutional public choice. These include: the aggregation of preferences; voting paradoxes and cycles; electoral competition and voting behaviour; the problems of and solutions to collective action; welfare state and redistribution; the impact of information and mass media on voting behaviour and public policy; the theory of coalitions, the behaviour of committees and legislatures including agenda-setting and veto-player power; principal-agent problems in politics; models of bureaucracy.

This course enhances a student’s understanding of the characteristics, determinants and consequences of public-policy making in liberal democracies. It provides theoretical foundations from both economics and political science, whilst developing an expansive knowledge of theoretical and applied areas of political economy. Does democracy promote economic growth and welfare? What determines the size and evolution of the welfare state? Is regulation done in the interest of consumers? Is there a feasible third way between markets and governments in the delivering of public services? To answer these and many related questions it is necessary to understand the complex relationships between politics and economics. Governments and political processes define the boundaries of economic relationships and the rules of market interactions. Moreover, governments themselves allocate resources and these allocations reflect complex political bargaining. Understanding the interaction between politics and economics can help us to gain insight into the key questions of public policy making.