Learning outcomes

After completing this course, the student is expected to independently be able use the political economy toolkit to analyse a variety of real world political phenomena.

Content

This course applies modern economic tools to the analysis of political behaviour, where political agents such as politicians, voters and members of interest groups are assumed to rationally pursue their own interest - just like consumers in the market. In modern democracies, resources are allocated among individuals not only through market processes, but also through political decisions. For example, a large part of the value of total production is collected in taxes, and these resources are in turn used for public production of goods and services as well as for direct transfers to individuals. For a comprehensive understanding of how the economy works, it is necessary to also understand the political processes that determine such a large part of the total resource allocation. The course will cover several of the most useful models in modern political economy. Special attention is also given to empirical evidence supporting the theoretical implications.

The course considers topics such as economic justifications of government, positive and normative properties of majority voting, electoral competition, and lobbying. The political economy tools will be applied to a variety economic problems, such as:

Why do different parties have so similar policies?

Why do people vote?

Which groups of voters can be expected to receive preferential treatment by politicians?

Is government spending increasing in election years?

What does it mean to vote with the feet?

Instruction

The course material will mainly be presented in lectures. There will, however, also be seminars and exercises during the class.

Assessment

The course will be examined by compulsory exercises, seminars as well as a term paper.

There will be three grades: pass with distinction (VG), pass (G) and fail (U).