Economic Policy and Public Choice

Lecture with Tutorial in WS 2013/2014

Prof. Dr. Bernhard Neumärker
 

Albert-Ludwigs-Universität Freiburg
Department for Economic Policy and Constitutional Economic Theory

Schedule

Lecture: Prof. Dr. Bernhard Neumärker

Tutorial: Martha Kontodaimon M.Sc.

Supplementary Tutorials: Mihaela Pavlova

Target Group and Language

• This course is designated 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 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.

Credits: 6 ECTS

• M.Sc. Economics: First-year course for profile ‘Economics and Politics’.
• M.Sc. VWL: Wirtschaftspolitisches Wahlpflichtmodul (Ordnungspolitik).
• Diplom VWL: Hauptstudium, Pflichtfach „Wirtschaftspolitik: Ordnungspolitik“, Pflichtwahlfach „Ordnungs- und Wettbewerbspolitik“.

Downloads

• 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:

• Syllabus
• Slides
   

Tutorial:

• Tutorial 1
• Tutorial 2
• Tutorial 3
• Public Good Game
• Tutorial 4
• Tutorial 5
• Tutorial 6
• Tutorial 7
• Tutorial 8
• Tutorial 9
• Tutorial 11
• Tutorial 12
• Tutorial 13

Sub-Tutorial:

• Catalogue of questions

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
   2. Liberal paternalism
   3. Constitutional political economy
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.