Political Economy (PECO)

Political economy studies the reciprocal relationship between economics and politics. The main focus is on the behavior of non-market agents such as politicians, voters, legislatures, government agencies, judicial institutions, NGOs and activist groups, the media, and their interactions with traditional market agents (firms and consumers). Political economy develops systematic frameworks for understanding interactions among these agents, as well as their incentives. These frameworks are then used to study the determinants of public policy both at the macroeconomic and microeconomic levels. In this course, students will learn various reasons why the government intervenes in the economy and how political actors constraint and shape government interventions. Along the way, students will be introduced to tools of formal modeling in the political economy literature.

The goal of this course is to introduce students to a selection of recent and on-going research projects led by International Development Organizations (IDOs), such as the World Bank or the International Monetary Fund, and aimed at implementing the post-2015 development Agenda adopted under the aegis of the United Nations. The Agenda embraces the view that development needs to be economically, socially and environmentally sustainable and sets 17 global development targets, the Sustainable Development Goals (SDGs). These SDGs focus on a broad range of issues, including ending poverty and hunger, reducing inequality, ensuring healthy lives, achieving gender equality, and promoting peace. For each selected SDG, the course will analyze the relevant theoretical framework, research methodology, empirical evidence, and related alternative studies. At the end of the course, students will become familiar with the current research agenda of IDOs, cutting-edge methods of analysis, and the latest development research findings. This course is accessible for students who have had Intermediate Microeconomics and Statistics

This course will be team-taught by a political scientist and economist. Students will use tools and techniques developed throughout the major to undertake original research. Prerequisites: PECO-201 and all preparatory courses in political economy. Spring.