Economic Policy and Public Choice

Lecture with Tutorial in WS 2019/2020

Prof. Dr. Bernhard Neumärker
 

Albert-Ludwigs-Universität Freiburg
Götz Werner Chair of Economic Policy and Constitutional Economic Theory

Schedule

Lecture: Prof. Dr. Bernhard Neumärker

There will be no lecture on the 27th November 2019. The replacement date for this lecture is 28th January 2020 at HS 2 (Alte Uni) on 14-16h (same room and time as Tutorial)

Tutorial: Bianca Blum and Dominik Schröder

Supplementary Tutorials: 

Start semester week 4 (11th November 2019).

Sub-Tutorial: English, Burhan Yalcin

Sub-Tutorial: German, Viola Nellessen

Sub-Tutorial: Mandarin, Zhiyun Yi

Target Group and Language 

•  This course is designed for first-year students of the M.Sc. Economics program (economics and politics), the M.Sc. VWL program, and Diplom-Students (Hauptstudium). Exchange students are equally welcome to participate.
•  If students of other programs and faculties (e.g. political science) wish to participate, they should contact the tutor by email before the third week of the semester.
•  Recommended prerequisites: Good knowledge of microeconomics.
• This module is entirely taught in English.
•  Participation and registration for experiments in the course is mandatory for writing the exam.

Credits: 6 ECTS

• M.Sc. Economics: First-year course for profile "Economics and Politics".
• M.Sc. VWL (PO2014): "Wirtschaftspolitik" and "Constitutional Economics and Competition Policy".
• M.Sc. VWL (PO2011): "Wirtschaftspolitik (Ordnungspolitik)".
• M.Sc. BWL (Public and Non-Profit Management): "Volkswirtschaftslehre"
• Diplom VWL: "Wirtschaftspolitik (Ordnungspolitik)" and "Ordnungs- und Wettbewerbspolitik".

Downloads & Content

• Outlines and slides will be provided at this website.
• Literature will be provided on Ilias.
• The passwords will be provided in the first sessions of the lecture and tutorial.

Lecture:

Slides EPPC Lecture (updated: 30.01.2020)

Outline Lecture EPPC

Organizational Matters

Tutorial:

Tutorial 1

Tutorial 2

Tutorial 3

Tutorial 4

Tutorial 5

Tutorial 6

Tutorial 7

Tutorial 8

Tutorial 9 (updated on 11.02.2020)

Tutorial 10 (Experiment)

Sub-Tutorial:

Sub-Tutorial 1

Sub-Tutorial 2

Sub-Tutorial 3

Sub-Tutorial 4

Sub-Tutorial 5

Sub-Tutorial 6

Sub-Tutorial 7

Sub-Tutorial 8

Sub-Tutorial 9

Sub-Tutorial 10

 Outline:

1. Introduction
2. Economic problems of economic policy
   1. Economic man and collective action
   2. Allocation and exchange
   3. Distribution and conflict
   4. Liberty and welfare
   5. Implementation and reform
   6. Stability and sustainability
3. The public choice of economic policy
   1. Rational and behavioral public choice
   2. Positive and normative public choice
4. Institutions and hierarchies of public choice
   1. Authoritarian policy formation
      1.1 Leviathan governments
      1.2 Autocratic regimes
   2. Democratic organization and voting rules
      2.1 Rational voting and basic voting systems
      2.2 Direct and representative democracy
      2.3 Legislature and Bureaucracy
      2.4 Interest groups, rent-seeking and lobbying
   3. Spatial hierarchy
      3.1 Federalism
      3.2 Supranational policy choice
5. Liberal concepts of economic policy formation
   1. Ordoliberal design and Constitutional political economy
   2. Liberal paternalism
   3. New Ordoliberalism
6. Application to special policy issues
   1. Redistribution in democracy
   2. Organizing the just welfare state
   3. Market regulation and privatization
   4. Constitutional budget constraints and their effects on economic policy

Readings:

• Hillman, A.L.: Public Finance and Public Policy, 2^nd Ed., Cambridge 2009.
• Mueller, D.C.: Public Choice III, Cambridge 2003.