Learning outcomes

By the end of the course, students will be able to:

  • Explain the different economic concepts covered in class concerning the role of institutions in the functioning of the market.
  • Present, where relevant, the formal reasoning behind these concepts.
  • Present the formal reasoning behind the approaches.
  • Present an economics article by explaining its thesis and outlining its strengths and limitations.

Content

The first part of the course will offer a historical overview of how economic theories have addressed the relationship between markets and institutions. It will begin in the 17th and 18th centuries with the Physiocrats and Adam Smith, and continue through to the early 21st century. The main authors and schools of thought studied will be:

- The Physiocrats and Adam Smith.

- Karl Marx.

- The Manchesterian "laissez-faire".

- John R. Commons and institutional economics.

- Karl Polanyi.

- German ordoliberalism.

- New Institutional Economics (in particular Ronald Coase, Harold Demsetz, and Douglas North).

The second part will focus on a number of issues related to the role of institutions, based on important articles in the economic literature. The following topics will be covered (to be adjusted if necessary depending on time):

-    The structure of property, particularly within firms.

-     Private/common/private property and its determinants.

-     The debate surrounding the “Coase theorem” and its limitations.

-     Lobbying and influence on institutions.

-     The moral foundations and moral consequences of the market. 


Teaching methods

Lectures, with significant time allocated for student questions. Course materials will include lecture content, PowerPoint presentations, and texts and articles made available. These texts will sometimes need to be read before class.

Assessment method

The assessment will be based on a 30-minute oral exam, preceded by a preparation period. 

1. The first question will relate to one of the texts or articles presented in class and will aim to ensure that the student has a thorough understanding of the text. The text in question will be provided to the student. The list of texts will be provided in advance.

2. A second question will focus on a point covered in the course.

The final grade will take into account both parts of the oral exam. 

Language of instruction

French