POLITICAL ECONOMICS
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- Versione italiana
- Academic year
- 2018/2019
- Teacher
- ROBERTO CENSOLO
- Credits
- 9
- Didactic period
- Secondo Semestre
- SSD
- SECS-P/01
Training objectives
- Main acquired knowledge.
Students will learn the basic tools of microeconomic analysis: the approach of rational choice applied to consumers and firms. The knowledge of the basic demand-supply model and the properties of competitive equilibrium. The main causes of market failures and the role of public policies. At macroeconomic level student will lean the basic indicators of national accounting and the theoretical approach to the main macroeconomic problems; economic growth, unemployment, business cycle and inflation. They will know the short and long run effects of fiscal and monetary policies and the different macroeconomic views between general equilibrium and Keynesian paradigms.
Main acquired abilities
Students will acquire the ability to consider social problems by employing a “principle of efficiency” as opposed to the traditional “principle of justice”. They will be able to describe the expected short and long run effects of policy measures as optimal responses of rational individuals to incentives. They will acquire capabilities in the critical evaluation of macroeconomic problems and the related policy measures with particular reference to the institutional frame of the European Union. Prerequisites
- The course makes extensive use of graphical presentation and requires some knowledge of basic manipulation of equations.
Course programme
- The course is divided into two parts. The first module (30 hours) covers the basic microeconomic analysis, while the second teaching module (30 hours) deals with macroeconomics.
Microeconomics module
In the introductory lectures it will be taught the conceptual tools to model decision process of subjects under the assumption of rationality, and how individual choices may result in social outcomes with different degrees of social desirability. Then, specific topics are presented: the theory of rational choice applied to demand and supply. The social properties of the competitive outcome e the causes of market failures: market power, externalities, public goods and common resources, the analysis of the corrective/distortionary effects of specific policy measures: taxes and subventions, price ceilings and quantity controls. The micro module concludes with the analysis of markets with asymmetric information: adverse selection, moral hazard, agency games and the theory of contracts.
Macroeconomics module
The main topics covered in the module are introduced through the investigation of the time evolution of the main macroeconomic indicators of national accounting. Moreover, students are thought how to download quantitative information from the Eurostat database. Theoretical topics covered include: the economic growth Solow model, the dynamics of the labour market and causes of unemployment, inflation and the quantitative theory of money, the analysis of fiscal and monetary policies within a dynamic aggregate demand and supply frame. The module concludes with basic concepts of the Keynesian framework: the principle of effectual demand, the under-employment equilibrium, and the role of fiscal policy. Didactic methods
- Lectures make use of slides, which are available online before the specific topic is discussed. During the presentation of each subject, particular emphasis is put on possible connections with law (Constitution, Civil Code and European Treaties)
Learning assessment procedures
- The following exam arrangements concerning attending students are valid only in summer sessions. For students who regularly attend classes the exam is based only on topics covered in the lessons In all cases students may withdraw without penalty and take the exam over another summer session. Students who fail can take the exam only with the non-attendant syllabus.
Early Exam Session. The exam is based on a written test with short essay questions for 1, 2 or 3 points. Total points available amounts to 33. Students may complete only microeconomics and take macroeconomics in another summer session. Those who score more than 30 will get a 30-plus evaluation (trenta e lode).
Summer Session. The exam is based on a written test with short essay questions for 1, 2 or 3 points, total points 30. For those students who take only macroeconomics the exam consists of 3 short essay questions (10 points).
In case of a satisfactory evaluation students may take an additional oral examination. In this case the score may be improved by a maximum of three points.
Learning evaluation of students who cannot attend classes consists of a written test with six short essay questions (20 points) and ten multiple choice questions (10 points). In case of a sufficient evaluation, students may sit an optional oral examination. The studying material is the following:
T Cowen, A. Tabarrok,(2011), Principi di Economia, Zanichelli (except chapters 16, 18, 29, 31, 32 and 33) Reference texts
- T Cowen, A. Tabarrok,(2011), Principi di Economia, Zanichelli.
