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Applied Political Economy
Last Updated: 2026-06-03 00:14:32
Abstract
Who makes which policy decisions, under what conditions, and why? Studying how different political actors interact is crucial to understanding what policies emerge and what economic outcomes result. Going beyond pure economic analysis, this course discusses theoretical and empirical results in the light of real-world examples, emphasising the fact that we live in a political economy.
Objective
After taking this course, students will be able to… …identify the motivations and constraints of political actors who a) make policy decisions, b) implement these decisions, and c) are targeted by them. …describe how different institutions and incentives shape the behaviour of different political actors. …explain the conditions under which it is difficult to achieve socially optimal outcomes. The course focuses on the application of political economy thinking and theoretical concepts to real world examples. Students will learn how to… …use theoretical knowledge to develop testable hypotheses. …identify empirical settings that allow these hypotheses to be tested. …critically discuss the implications and limitations of empirical research results in order to develop policy recommendations. …compare different institutions and policy designs and assess their strengths and weaknesses. An aim of the course is that, upon completion, students should be able to develop and describe a plan for their own political economy analysis.
Content
The Applied Political Economy course teaches the fundamentals of political economy analysis with an emphasis on empirical research and practical examples. In essence, we explore how economic thinking can be applied to study non-market relationships that are relevant to understanding important social, economic, environmental, and political outcomes. Students will acquire knowledge of key concepts used to describe the behaviour of individual political actors and groups as well as the incentives and institutions that shape their decisions. For example, we will dive into topics such as politicians’ re-election strategies and political budget cycles, federalism and decentralisation, the interaction of national politics and international organisations, and the underlying political-economic reasons for the difficulty of addressing environmental and economic problems in a globalised world. The study of political behaviour adds an extra layer to economic analysis. Based on introductory book chapters and research papers, the lectures will introduce general political economy approaches and theoretical concepts. Equipped with this conceptual foundation, we will look at real-world examples and engage in discussions about empirical research that is aimed at identifying specific causal political-economic relationships. Basic statistical and econometric skills, including hypothesis testing and interpreting regression results, will enhance your learning experience. This course is as much about learning new concepts as it is about critically applying this knowledge to new situations, which course participants will also be asked to identify independently. We encourage active participation in class discussions and expect students to stay engaged with the material through reading and preparation for the lectures. Please note that Applied Political Economy will be offered as a block course. Please refer to the syllabus on Moodle for further information on course organisation, assessment, and attendance policy.
General Information
- Language
- English
- Levels
- MSC
- Frequency
- Yearly recurring
Examination
- Type
- graded semester performance
Course Components
| Type | Title | Time & Place | Hours |
|---|---|---|---|
| lecture |
Applied Political Economy
Block course
|
|
12 h semesterly |