APPLIES TO ACADEMIC YEAR 2015/2016

GRA 5916 The State and the Market: Core Concepts in Political Economy

Responsible for the course
Are Vegard Haug

Department
Department of Accounting - Auditing and Law

Term
According to study plan

ECTS Credits
6

Language of instruction
English

Introduction
This is a political economy course that focuses on business and politics at the national level . It requires no previous knowledge, and has been designed for the ‘Minor in Political Economy’ specialization. The course covers several fundamental core concepts in political economy relating to the operation of the state and the market. The central themes include political and market institutions, the rationale for market regulation and public services, decision making and resource allocation, and the deliverance of public and private goods.

Learning outcome
This course provides students with an introduction to the concepts at the core of political economy in general, in terms of institutions, policy making, and market regulation. Students will explore problems of democratic decision making, including questions of equality and efficiency, debates about market failure, government failure and the supply of public, private and strategic goods, and the rules, organizations and policy tools involved in the operation of states and markets. Core questions include institutional design, policy making, the delegation of power, public service delivery, privatization and regulation, the changing nature of the welfare state, public choice analyses of the growth of state spending, and whether democracy causes or impedes market-driven economic growth (why are some states rich and others poor; has privatization reduced the cost of public services; do oil-rich states suffer from a ‘resource curse’; are democracies richer than dictatorships?)

Prerequisites

All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have spesific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.

Compulsory reading
Books:
Busch, Tor ... [et al.]. 2013. Public management in the twenty-first century : trends, ideas and practices. Universitetsforlaget
Hill, Michael. 2013. The public policy process. 6th ed. Pearson

Collection of articles:
Compendium of Journal Articles

Other:
A list of compulsory readings will be provided on It's learning or in class.
During the course there may be hand-outs and other material on additional topics relevant for the course and the examination.


Recommended reading
Books:
Barr, Nicholas. 2012. Economics of the welfare state. 5th ed. Oxford University Press
Cullis, John G. and Phjilip Jones. 2009. Public finance and public choice : analytical perspectives. 3rd ed. Oxford University Press
Le Grand, Julian. 2006. Motivation, agency, and public policy : of knights and knaves, pawns and queens. paperback edition. Oxford Univeristy Press
Lijphart, Arend. 2012. Patterns of democracy : government forms and performance in thirty-six countries. 2nd ed. Yale University Press
Pollitt, Christopher and Geert Bouckaert. 2011. Public management reform : a comparative analysis : new public management governance, and the neo-Weberian state. 3rd ed. Oxford University Press
Shepsle, Kenneth A. 2010. Analyzing politics : rationality, behavior, and institutions. 2nd ed. W.W. Norton
Weingast, Barry R. and Donald A. Wittman, eds. 2006. The Oxford handbook of political economy. Oxford University Press

Course outline
1. Introduction to political economy and the state – market relationship
2. Market failures, state failures and the supply of public, private and strategic goods
3. Political and market institutions, decision making, lobbying, and public choice analysis
4. Public services, the welfare state, privatization, liberalization and modernization
5. Macroeconomic policy, budgets and the growth and containment of state spending
6 The relationship between states and markets, democracy and capitalism, the rule of law and economic growth.

Computer-based tools
Not applicable

Learning process and workload
A course of 6 ECTS credits corresponds to a workload of 160-180 hours.

Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class that is not included on the course homepage/It's learning or text book.


Examination