Political Economy


Political Economy is an intermediate course covering issues in political economy as they relate to aggregate issues, including economic growth, fiscal and monetary policy, and the political economy of corporations. The course aims at two distinct objectives: providing an analytical overview of major issues addressed in political economy; train students to interpret specific models in a way useful to policy analysis.

General characterization





Responsible teacher

José Tavares


Weekly - Available soon

Total - Available soon

Teaching language



Reasonably good English and basic econometrics.


Teaching method

Lectures are based on presentation and discussion of political economy topics, both in relation to broad discussion in economics, and as mirrored in relevant research papers. Class participation is strongly encouraged, and critical thinking encouraged. Previous reading of required materials and assessment of recommended materials is highly advised, and likely to be reflected in the final exam.

Evaluation method

Final grade is based on the group presentation, a final exam, and class participation. The weights of the different elements are:

-    Mandatory final exam, 35 %
-    Group presentation, 55 %
-    Class participation, 10 %

Each student is expected to join a group of at least three students and at most four, and produce a critical oral presentation either: reviewing a political economy issue of current interest; presenting and assessing an academic paper of interest. The topics have to be approved by the professor.

Subject matter

Session 1 and 2: Political Economy. Paradigm, Concepts and Applications.

Session 3 and 4: Growth and Business Firms

Session 5 and 6: Debt and Deficits, Reform and Adjustments Session 7 and 8: Fiscal federalism and Currency Unions Session 9 and 10: Politicians and Endogenous Political Systems
Session 11 and 12: Group Presentations


Programs where the course is taught: