Positive Political Economics

This subject has the following teaching availabilities in 2016:

One of the following 2 subjects:

Plus one of the following 2 subjects:

None

None

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

This subject provides an overview of the field of political economics. Political economics extends the scope of standard economic analysis by assuming that individuals follow their own agenda and maximize their own utility not only in the economic, but also in the political sphere. The following broad areas will be covered: Determinants of institutional quality and its effect on economic performance; models of political competition and (re-)elections; various (so-called) political and institutional failures, including corruption and rent seeking, and delays in welfare-increasing reforms.

On successful completion of this subject students should be able to:

• Reflect on determinants and effects of institutional quality;
• Explain different models of political competition;
• Understand when re-elections can discipline an incumbent government and when they can lead to inefficient policies;
• Apply models of political competition to understand observed policies;
• Discuss the main causes and effects of corruption;
• Apply lobbying and rent seeking models to understand observed policies;
• Understand why welfare-increasing reforms are often delayed; and
• Critically evaluate real-world policies from a political economics perspective.

• A 2-hour examination. End of semester (60%);
• One individual assignment of 3000 words, due week 6 (40%).

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

• Written communication
• Problem solving
• Interpretation and analysis
• Critical thinking
• Receptiveness to alternative ideas