This module focuses on two central questions: How do economists study political institutions? And, how much does the experience of Central and Eastern European countries (in their transition away from communism) contribute to these research efforts?

We start by introducing the key ideas and concepts in the political economics literature on Institutions. Then we look at the institutional vacuum at the start of the transition from communism. We proceed investigating how these countries build up new political institutions, in many cases from scratch. Because one of the major drivers in this process of institutional building was the prospect of membership in the European Union, on week 4 we discuss the role of integration and globalisation, while on week 5 we look in detail at what some call institutional integration. After reading week, we turn to (to coin a phrase) Institutions with a Human Face. On week 6 we study educational institutions and the role of universities (e.g., do democracies choose better educated leaders than dictatorships?) and then we examine labour market institutions, which leads us to the important issue of Inequality on week 8. And then, on week 9, we will study how culture and the media affect institutional development, which together with inequality gives us the elements to conclude this module by discussing Populism.

While other courses at SSEES examine similar topics, what sets this course apart is the use of rigorous quantitative techniques and theoretical economics tools to evaluate the origin and consequences of political institutions. Political institutions will be studied using an economics approach. The module’s aim is to teach students critical thinking based on interpreting and using quantitative analyses. To this end, the students will develop their skills in interpreting regression analyses and in evaluating how theoretical predictions can be tested econometrically. Finally, the module will also seek to develop and improve students’ writing skills.