Political Economy

3 Credits · Level: Graduate, Undergraduate

Political economy studies the determinants of public policy both at the macroeconomic and microeconomic levels. The main focus of this introductory course by professor Laurent Bouton is on the behavior of non-market agents such as 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 such behaviors and interactions. In many situations, non-market agents heavily influence the functioning of the market. For instance, emission standards affect virtually all aspects of automobile design and manufacturing, and thereby the competitive advantages of automakers. Political economy studies how elections, lobbying, information provision, and institutional specificities shape actual emission standards, which may thus differ from the socially optimal outcome. This course is for MA in Political Economy students at Solvay School Brussels.