Political Economy and Public Finance - AUCE

Political Economy and Public Finance

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Course Code:


Course Hours:


Contact Hours / Week:



BECO325, BFIN330



Course Description:

In Political Economy, we will examine how the struggles for power and for wealth affect one another and the realization of these values. Specifically, we will compare and contrast political and market solutions to collective problems; the politics of economic crises; corporations and labor in the political economy; regulation, monetary policy; and fiscal policy. Political Economy regards income redistribution, taxation, the production of public goods, fiscal policy and other actions of the public sector as determined by a political process simultaneously with the economic process of exchange and production. Students will investigate the connection between public policies and the political forces that shape them. We will also investigate the effects of political institutions on political and economic outcomes and assess the relative performance of different political systems specially the public finance. One of the aims of the discussion in the class will be to test abstract theories of development using in-depth knowledge of cases, and to further our understanding of cases by applying lessons from theoretical and statistical work.

Course Learning Outcomes:

Upon successful completion of this course, students will be able:

  • To understand the concept of Political economy and public finance
  • To know if Public Finance needs Political Economy
  • To know what is failure in a non-market or Policy?
  • To learn about the theory and practice of public Finance from three decades of empirical research on public choice

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