OVERVIEW

Political economy has as its object the study of economic phenomena at the micro-economic and macro-economic levels. To do so, the discipline resorts to inductive and deductive methods using theoretical models. These methodological tools provide the analytical foundation for investigations relating to individual choice and social welfare, up to and including public economics and the appropriateness of state intervention in the economy, as well as the analysis of macroeconomic models.

AIMS AND CONTENT

LEARNING OUTCOMES

This teaching aims to promote understanding of the most important issues in microeconomic and macroeconomic theory by introducing the basic principles of political economy as a science. The first part of the course focuses on microeconomic theory and aims to provide the essential tools for understanding the incentives underlying the choices of rational economic actors operating in a certain market. The second part of the course is devoted to macroeconomics. In particular, the main variables involved (such as GDP, inflation, unemployment, consumption and investment) are defined and an introduction to the main intellectual challenges of macroeconomics (such as explaining the business cycle and long-run economic growth) is provided. This background knowledge provides the necessary framework for continuing the eventual study of economics, helping the student to analyze economic phenomena in order to construct an informed opinion of economic reality.

AIMS AND LEARNING OUTCOMES

The teaching of Political Economy aims to offer the concepts of microeconomics and macroeconomics, presenting and demonstrating their applicability to contemporary economic theory. Particular attention will be paid to those aspects of the discipline in order to ensure a better understanding of the institutional mechanisms in charge of economic and financial policy. At the end of the course, the student will have acquired the main tools of economic theory that will enable him or her to analyze current events with a new perspective and greater discernment.

PREREQUISITES

There are no specific prerequisites for the Political Economy course; however, a basic knowledge of mathematics is required.

TEACHING METHODS

The Teaching is carried out with face-to-face lectures for a total of 36 hours (equal to 6 CFU), during which the main microeconomic and macroeconomic models will be presented and analyzed. Exercises aimed at clarifying and deepening the topics covered in lectures for preparation for the written test are also planned, with time to be agreed upon.

SYLLABUS/CONTENT

The teaching consists of two parts:

1. Microeconomics: The notion of scarcity, the relationship between efficiency and equity, opportunity cost, the cost-benefit approach to economic choices, considerations of the method of economic theory, the invisible hand, rationality and individual interest, positive and normative problems. How markets work: market forces of supply and demand, elasticity and its applications, supply demand and economic policies. Markets and welfare: producing consumers and the efficiency of markets, the cost of taxation. Hints at market forms: perfect competition, monopoly, and market forms of imperfect competition. Market failures and government intervention: insufficient competition, externalities, public goods, imperfect information.
2. Macroeconomics: The facts of macroeconomics: measuring a nation's income (the measurement of GDP and its components, real GDP and nominal GDP, GDP and economic welfare). Measuring the cost of living: calculation of the consumer price index and the GDP deflator. Unemployment, minimum wage laws, unions and collective bargaining, efficiency wage theory. The monetary system: money its functions and forms, the role of central banks with special reference to the ECB, money supply and the money multiplier. Money growth and inflation: the classical theory of inflation and the costs of inflation. Short-run economic fluctuations: aggregate demand and aggregate supply, the influence of monetary and fiscal policy on aggregate demand.

RECOMMENDED READING/BIBLIOGRAPHY

N. Gregory Mankiw, The Essentials of Economics, Zanichelli, Bologna latest edition.

The parts of the reference text are the following chapters: 1, 2, 4, 5, 6, 7, 8, 10, 11, 17, 18, 22, 23, 24, 25 and 26. Additional material for exam preparation will be available in the teaching section on the web classroom platform (aula web).

In view of some of the analytical and language difficulties that the discipline presents, assiduous class attendance is recommended..

TEACHERS AND EXAM BOARD

Exam Board

FABRIZIO GAZZO (President)

GIULIA BIANCHI

LESSONS

LESSONS START

Classes are held in the first semester starting September 16.

Class schedule

The timetable for this course is available here: Portale EasyAcademy

EXAMS

EXAM DESCRIPTION

The exam, with an average duration of 90 minutes, consists of a written test structured as follows: 10 multiple-choice tests (10 points), 3 open questions also in the form of an exercise (20 points).

A minimum score of 18/30 is required to pass the exam. The lecturer reserves a subsequent oral assessment in case he/she has doubts or reservations about the overall evaluation of the written test.

In order to take the exam, it is mandatory to register by following the relevant computer procedure: without registration, you will not be admitted to the exam. Once registered, should you decide not to show up for the roll call, you must, again informatically, unregister under penalty of exclusion to the next one.

ASSESSMENT METHODS

The examination aims to test the student's actual knowledge and acquisition of the theoretical basics as well as his ability to analyze the economic problems studied. Through general theoretical questions, it will test whether the student is able to:

- identify and define economic concepts using appropriate technical language;

- reason independently using the conceptual models studied.

The student will be expected to demonstrate an understanding of the importance and significance of the topics covered in the teaching of Political Economy by discussing in depth the relevant microeconomic and macroeconomic modeling.

Students who have valid certification of disability or Specific Learning Desorders (DSA) on file with the University may request the use of compensatory measures during the exams (e.g. additional time, concept maps, modifications in the written/oral mode), following the guidelines (p. 5) published here. In any case, for further information, please contact the Department's disability liaison: Isa.Fanlo@unige.it

Exam schedule

FURTHER INFORMATION

Registration on the course's flatpharma Aula web site is strongly recommended. That site is designed as a place both for interaction between students and lecturer (there are both a forum and a chat room) and as a repository of course materials that students will be able to draw on freely. All information relevant to the course will be posted there, and exam results will also be posted. In addition, a Political Economy group will be activated on WhatsApp.

Students with certification of DSA, disability or other special educational needs should contact the lecturer at the beginning of the course to agree on teaching and examination methods that, while respecting the teaching objectives, take into account individual learning patterns and provide suitable compensatory tools. Please note that requests for compensatory/examination measures must be sent to the course teacher, the School's contact person and the "Services Sector for the Inclusion of Students with Disabilities and DSA" (dsa@unige.it) at least 10 working days before the test, as per the guidelines available at the link: https://unige.it/disabilita-dsa