Political Economy is branch of Economics dealing with political policies and economic processes, their interrelations, and their influence on social institutions. It is similar to modern economics but dealing chiefly with governmental policies. It mainly study the role of public policy in influencing the economic and social welfare of a political unit.This course is designed to provide students with an introduction to the field of political economy. Political economy seeks to understand and explain policy outcomes and political behavior. The approach taken is an interdisciplinary one that utilizes tools and concepts from economics to study politics and political behavior. The course will presume that political actors are rational and goal oriented. Political outcomes are then explained by the interaction between these actors within the (institutional) constraints of their environment. This course aims to enable students to apply economic theories and concepts to the study of political action and the formation of policy. Students will learn how economic and political forces may shape the incentives and constraints of policymakers and other political actors. Furthermore, this course will enable students to recognize the role of institutions in shaping both political action and policy outcomes.

Learning Outcomes

  • Master basic principles of economics and political science and be able to integrate them in the analysis of questions about public policy and societal institutions.
  • Understand the intellectual roots of economic liberalism and critiques thereof.
  • Understand the ethical and philosophical dimensions of questions about public policy and how they interact with economic and political considerations.
  • Be able to understand, interpret, and critically evaluate empirical evidence on economic, political, and public policy questions, including qualitative, quantitative, and formal statistical and econometric evidence.
  • Gain some exposure to and expertise in some U.S. domestic public policy and political issues, the comparative study of policies, politics, and institutions across countries, and questions of international political economy and globalization.
  • Gain an understanding of the history and institutions of American politics, how these and other factors (such as interest groups, coalitions, and framing of issues) influence which policies get adopted through the political system, and be able to formulate a persuasive argument about what an effective political strategy would be based on that knowledge.
  • Gain a real-world perspective on the making of or effects of public policy through an experiential learning exercise, such as a course with a significant community service or field work component, or a policy-related internship.
  • Be able to convincingly define a public policy problem, investigate a range of possible alternative solutions to that problem, and construct a persuasive argument about the best approach to addressing that problem, drawing on all of the elements noted above, and the best and most relevant scholarly literature on the topic. Develop the skills to do this effectively working together in a team of other students, to produce a well-written report on it, and to successfully communicate this work to an audience of students and faculty in an oral presentation.
  • Text Book:
  • 1.Shepsle, K.A. Analyzing Politics: Rationality, Behavior, and Institutions,
  •    2nd Edition (2010). W. W. Norton & Company

    2. Kardar, S. (Latest Edition). The Political Economy of Pakistan. Progressive Publishers

       Supplementary Texts

    3. Riker, W.H. (1988). Liberalism Against Populism: A Confrontation

       Between the Theory of Democracy and the Theory of Social Choice. Waveland Press

    4. Nadeem, A.H. (2002). Pakistan: The Political Economy of Lawlessness. Oxford  University Press

    5. Hussain, I. (1999). Pakistan: The Economy of an Elitist State. Oxford University Press

Assessment  Criteria

Mid Term: 30 marks

Sessional: 20 marks

  • Project: 40%
  • Presentation: 30%
  • Participation: 30%

Final Exam: 50 marks

Course Material