EC260: The Political Economy of Public Policy

This course enhances a student’s understanding of the characteristics, determinants and consequences of public-policy making in liberal democracies.

It provides theoretical foundations from both economics and political science, whilst developing an expansive knowledge of theoretical and applied areas of political economy.

Does democracy promote economic growth and welfare? What determines the size and evolution of the welfare state? Is regulation done in the interest of consumers? Is there a feasible third way between markets and governments in the delivering of public services? To answer these and many related questions it is necessary to understand the complex relationships between politics and economics.

Governments and political processes define the boundaries of economic relationships and the rules of market interactions. Moreover, governments themselves allocate resources and these allocations reflect complex political bargaining. Understanding the interaction between politics and economics can help us to gain insight into the key questions of public policy making.

Prerequisites: Introductory microeconomics, basic knowledge of calculus and statistics.

Level: 200 level. Read more information on levels in our FAQs

Fees: Please see Fees and payments

Lectures: 36 hours

Classes: 18 hours

Assessment: One piece of written work and one written examination

Typical credit: 3-4 credits (US) 7.5 ECTS points (EU)

Please note: Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements. For more information on exams and credit, read Teaching and assessment

This course is suited to students with a background in introductory microeconomics who wish to better understand the complex relationship between economics and politics. If you are pursuing a career in policy development, research and government you should consider taking this course.

This course enhances a student’s understanding of the characteristics, determinants and consequences of public-policy making in liberal democracies.

It provides theoretical foundations from both economics and political science, whilst developing an expansive knowledge of theoretical and applied areas of political economy.

The design of this course is guided by LSE faculty, as well as industry experts, who will share their experience and in-depth knowledge with you throughout the course.