Entry requirements

A Bachelor's degree, equivalent to a Swedish Kandidatexamen, from an internationally recognised university. Also required is 60 credits in economics and 15 credits in statistics (or a closely related subject).

Learning outcomes

After completing this course, the student is expected to be able to

• explain how the political process can affect economic policy
• solve basic theoretical models in political economics, as well as understand and discuss their empirical implications
• identify both strengths and weaknesses in contemporary research in the field, both theoretical and empirical
• independently formulate a feasible research idea which would contribute to the research within the field
• apply theoretical and empirical tools to evaluate policy-relevant questions
• offer and receive constructive criticisms regarding the student's own, as well as other student's work

Content

This course examines political behaviour through the lens of modern economic tools, treating political agents-such as politicians, voters, and interest group members-as rational actors pursuing their own interests, similar to consumers in a market. In modern democracies, resource allocation occurs not only through markets but also through political decisions. For instance, taxes collected from total production fund public goods, services, and direct transfers to individuals. Understanding these political processes is essential to comprehending how the economy functions as a whole.

The course explores key models in political economics and the empirical evidence supporting their implications. It begins with social choice theory and foundational theoretical models, including the median voter model, probabilistic voting, and the citizen-candidate framework. Topics such as agency problems, rent-seeking by politicians, political budget cycles, lobbying, and campaigning are also covered.

The second part of the course adopts an applied focus, addressing recent theoretical developments and empirical findings on topics such as the role of information and mass media, the labor market for politicians, the rise of populism, and political dimensions of immigration and climate policy. The course concludes with an analysis of how institutions and other persistent factors shape modern economic development.

Instruction

The course material will be presented in lectures and seminars as well as through exercises during the class.

Assessment

The assessment consists of a written exam, a term paper and student presentations.