Course description
State, Law and the Economy I
Economic concepts often give a fresh and unobvious perspective when applied to the study of how the state, law, and the economy functions and are interrelated. This course teaches students essential economic concepts in an intuitive manner relevant to the study of political economy. Part One of the course is focused on developing the essential economic concepts. These are then applied to the study of the nature of the liberal democratic state and why it has to be a limited state in contrast to a populist democratic one.
Topics include the contractual nature of the state, public versus private goods, property rights and economic externalities, the logic of collective action, social choice theory, agenda control, the art of manipulation, and the compatibility of two ideas of liberty with the democratic state.
The use of interdisciplinary materials, empirical inference, game theoretic simulation, and cross-referencing with political philosophies and well-known historical cases, provide students an opportunity to connect different perspectives and deepen their understanding of the democratic state in a free society using economic concepts.
Upcoming start dates
Who should attend?
Prerequisites
A basic knowledge of economy and politic.
Training content
Week1: Some Methodological Issues and Collective Choice
Lectures 1 and 2 consider some specific concerns in applying economic analysis to the study of collective action, namely, (1) the rationality assumption, (2) the use of simplifying models, and (3) the problem of the fallacy of composition in studying collective action. Then we will explore the contractual nature of the state. We consider why the sum of individual choices is not collective choice. The reasons for collective choices are to achieve allocative efficiency and redistribution.
Week2: Pure Public Goods and Coase Theorem
Lecture 3 and 4 utilizes game theory to explain how the structure of payoffs characterizes political choices, including the provision of public goods. We then learn how market externalities can be corrected through collective action and consider the implications of the Coase theorem for public intervention.
Week3: Violence and the Origins of the State and Wisdom of Philosophers
Lecture 5 and 6 considers how the emergence of state institutions with human civilization has reduced violence and life loss. The purpose of moral and political philosophies, from Plato and Aristotle to Locke, Rousseau, and Marx has sought to find practical or ideal political arrangements where humankind can live together in peace and flourish.
Week4: Two Concepts of Liberty, Theory of Social Choice and the Theory of Democracy
Lectures 7 and 8 introduce two concepts of liberty: negative and positive liberty. The two interpretations of liberty are then related to liberal versus populist democracy through the application of social choice theory. We examine how when applied to voting and the design of political institutions, social choice theory provides a new perspective on the just society considered by political philosophers from Plato to Marx.
Week5: The Art of Political Manipulation
Lecture 9 studies how heresthetics—the use of rhetoric and strategic structuring of social choice—is used to achieve a desired political outcome. The example of Abraham Lincoln in ending slavery is used as an illustration.
Week 1: Methodology and Collective Choice
Lessons 1 and 2 deal with some specific issues of applying economic analysis to the study of collective action, namely (1) rationality assumptions, (2) use of simplified models, (3) research collectives The fallacy of action; and then discuss the nature of the contract of the state; why the sum of individual choices is not equal to collective choice; collective choice is to achieve allocation efficiency and redistribution.
Week Two: Pure Public Goods and the Gauss Theorem
Lessons 3 and 4 use game theory to explain how payment structures can underscore political choices, including the provision of public goods. We then look at how market externalities can be corrected through collective action and examine the implications of Gauss' theorem for public intervention.
Week 3: Violence and the Philosopher's State and the Origin of Wisdom
Lessons 5 and 6 are about how the emergence of state mechanisms in human civilization has reduced violence and human casualties. The purpose of moral and political philosophy, from Plato and Aristotle to Locke, Rousseau and Marx, seeks to find practical or ideal political arrangements in which human beings can coexist in peaceful coexistence and prosperity.
Week 4: Two Concepts of Liberty, Social Choice Theory and Democratic Theory
Lessons 7 and 8 introduce two concepts of freedom: negative and positive liberty. Then, through the application of social choice theory, the two interpretations of freedom are related to liberal and populist democracy. Our study of how social choice theory applies to voting and the design of political institutions provides new perspectives on just societies as considered by political philosophers from Plato to Marx.
Week 5: The Art of Political Manipulation
Lesson 9 cites the example of Abraham Lincoln in ending slavery and examines how rhetoric and the strategic constructs of social choice can be used to achieve desired political outcomes.
Course delivery details
This course is offered through University of Hong Kong, a partner institute of EdX.
2-3 hours per week
Costs
- Verified Track -$50
- Audit Track - Free
Certification / Credits
What you'll learn
- To understand how collective decisions are made with the use of economic concepts.
- How the emergence of states in facilitating collective decisions have reduced incidences of violence and improved human welfare.
- How economic concepts can be applied to tackle problems and conflicts, for example, through well-defined property rights, use of rule-based methods, voting rules, etc.
- The application of the theory of social choice to illuminate the liberal and populist interpretation of voting and the relationship with theories of liberty and democracy.
- Learn how actual politics can be viewed as the use of heresthetics or the art of manipulation to achieve political objectives.
- Learn how to use economic concepts to make group decisions.
- How the emergence of states facilitated collective decision-making, reduced violence, and improved human well-being.
- How to apply economic concepts to resolve problems and conflicts, e.g., through explicit property rights, using rule-based approaches, voting rules, etc.
- Apply social choice theory to illuminate liberal and populist explanations of voting and their relationship to liberal and democratic theory.
- Learn how to think of practical politics as using aesthetics or the art of manipulation to achieve political goals.
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