Politics and economy 2400-ENSM062B

This seminar will focus on the various aspects of the economics of politics. Students will study economic issues related to politics, balancing theory with empirical results. In the thesis students can apply economics from several fields (Public Choice, Political Economy) to questions related to your topics. The topics listed below are meant to be “proposal” to think about public choice problem rather than recipes for Bachelor thesis.
Governmental Growth, Fiscal Deficits and Government Debt, Public goods
How to explain for government activity in general or in the level of a particular program or tax (social security, defence, public parks, etc.). Identification of unique political features (listed below)

Democracy vs. Dictatorship
Autocratic and dictatorial regimes are often considered the bane of the developing world.
What economic conditions generate these regimes or how do their rulers affect economy? Which economic factors explain a political transition from a nondemocratic society to a democratic society? When does a democracy get stable?

Political Competition, political turnover
Is political competition as efficient as market competition? Is term limit affect expenditure policy?

Political Business Cycles
Many economists claim that a reason for economic fluctuations is the election motive of politicians.

Powers and Constitutions
Separation of powers and constitutions are two key elements of both parliamentary and presidential democracies. What is the role of these institutions and how do they affect economic performance?

Corruption, Rent Seeking
Which explanations can be given for the corrupt behaviour of bureaucrats? In which conditions may this behaviour be exacerbated? What are the possible solutions to this problem?

Fiscal Federalism
determinants of centralization division of responsibilities among local, state and federal governments). Are some states more likely to be centralized than others? What institutional, fiscal, and demographic factors account for this? How does the political process in a federal state shape the economic policies?

Fiscal Illusion
Analysis of effects of rational ignorance and fiscal illusion with a focus on a particular policy area (budget, financial regulation, health care, environmental regulation, etc.). How does rational ignorance affect policy in the area of interest? To what extent might politicians or interest groups use rational ignorance to promote their own interest?