Courses Master Display 2013-2014

Course Description To PDF
Course title Political Economy
Course code EBC4096
ECTS credits 6,5
Assessment None
Period
Period Start End Mon Tue Wed Thu Fri
2 28-10-2013 20-12-2013 X X
Level Advanced
Coordinator Kaj Thomsson
For more information: k.thomsson@maastrichtuniversity.nl
Language of instruction English
Goals
Taxation, expenditure and regulatory policies enacted by the government have significant impact on economic outcomes. Do these policies reflect the preferences of the people of the country? Democratic governments are formed by politicians chosen through an electoral process. How do the motivations of the politicians affect their choice between providing efficient levels of public goods and retaining rents for themselves? Do elections check the rent-seeking activities of the politicians and result in a more competent government? Which electoral rules are more successful in achieving this goal? Different constitutions lay out different procedures for political decision making. What are the effects of different constitutions on policy? Some policies can have a large impact on a small group of people resulting in the formation of special-interest groups who lobby to affect policy in their favor. How does lobbying influence policy?

We study these questions by modeling the political institution as a game between voters and politicians. Different political institutions are modeled by appropriately defining the rules of the game. Finally, we use game-theoretic equilibrium concepts to analyze the nature and economic implications of this strategic interaction.
Description
See Learning Outcomes and Competences
Literature
Persson, T. and Tabellini (2000). Political economics: Explaining economic policy. Mit press, selected articles.
Prerequisites
Compulsory: Knowledge of microeconomics at level of Wetzstein "Microeconomic Theory", Varian "Intermediate Microeconomics" or higher; (consumers, producers, welfare economics, equilibrium in games). Knowledge of public economics at level of Mosen "Public Finance"or higher; (Public goods, externalities, taxation, social insurance). GAME THEORY (Nash, Bayesian-Nash, Subgame Perfect Equilibria), CALCULUS.
Teaching methods (indicative; course manual is definitive) PBL / Presentation / Lecture / Groupwork
Assessment methods (indicative; course manual is definitive) Participation / Written Exam
Evaluation in previous academic year For the complete evaluation of this course please click "here"
This course belongs to the following programmes / specialisations
Master Economic Studies Electives
Master Economic Studies Public Economics
Master Fiscale Economie Economics Electives