Economic Theory of Political Decisions


This course is the Modul Ökonomische Theorie politischer Entscheidungen of the Master of Science in Public Economics and provides an introduction to the economic analysis of public …nances and public policy more generally. It considers how economic approaches can help to analyse and evaluate political decision-making processes. It starts with a brief introduction to social choice theory, covering Arrow's impossibility theorem and the Gibbard Satterthwaite theorem. The second part of the course is devoted to the tools of modern political economics. The third and longest part is devoted to applications. The course follows the textbook by Persson and Tabellini (2000), with additions from the recent literature.

Acemoglu D 2005. Constitutions, Politics, and Economics: A Review Essay on Persson and Tabellinis The Economic Effects of Constitutions. Journal of Economic Literature, Volume 43, Number 4, pp. 1025-1048(24)
Acemoglu D, Robinson JA. 2005. Economic Origins of Dictatorship and Democracy. Cambridge University Press.
Barbera S 2010. Strategy-Proof Social Choice. Mimeo.
Barbera S, Jackson M.O. 2006. On the Weights of Nations: Assigning Vot- ing Weights in a Heterogeneous Union. Journal of Political Economy, vol. 114, no. 2.

Freie Universität Berlin