Political Economy II

Code:

D108 II

Acronym:

EP II

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2010/2011 - 2S

Active?	Yes
Course/CS Responsible:	Law

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
LDB	217	Oficial Study Plan LD	1	-	6	-

Teaching language

Portuguese

Objectives

This discipline is based on economics and allows the students to understand:
- The intervention of the government in the economy and the associated juridical consequences;
- The interaction between public economics and politics and its influence on colective choice.
- The links that embody individual choice and colective choice and the shape of institutions.
- International economic relations within a globalized world;
- The economic approaches to international trade, enhancing the gains from the opening of economies;
- The payments among nations and the foreign exchange market;
- The international movement of labour and capital and the mechanisms of economic integration and the appearing of trade blocs.

Program

PART I – ECONOMICS OF STATE INTERVENTION IN THE NATIONAL CONTEXT
I - GOVERNMENT INTERVENTION : the economics of private sector and public economics; the intervention of the state in the economy and its juridical consequences.
II - FUNCTIONS OF THE STATE: allocation, redistribution, stabilization.
III– TAXATION AND : principles of the tax system ; the theory of tax incidence; taxes; social security contributions ; the problem of tax evasion;
Public debt and intergenerational equity.
IV - PUBLIC DEBT: public debt and fiscal solvency; burden on future generations.
V – ECONOMICS OF PUBLICA CHOICE AND POLITICS: democracy and colective choice ; the political power of majority: the dictatorship of median voter; the political power of minorities: the lobbying of interest groups; information asymmetries and fiscal illusion; democracy and the growing of public sector; why voter´s vote?
VI – DECENTRALIZATION: arguments in favour of decentralization ; the functions of different levels of government; intergovernamental transfers and local taxes.
PART II - ECONOMICS OF STATE INTERVENTION IN INTERNATIONAL CONTEXT
I – BASIC THEORY OF INTERNATIONAL TRADE: advantages of international trade; international economic relations and globalization; the international mobility of production factors; economic integration and the appearing of economic blocks of nations.
II - PROTECTION AND BARRIERS TO INTERNATIONAL TRADE
III - PUBLIC CHOICE AND INTERNATIONAL TRADE: lobbying for pretection; interest groups and voluntary restrinctions to exports, political costa of protection.
PARTE III - SEMINARIES IN ECONOMICS: employement and competition; international commerce and globalization; monetary politics; the euro and other currencies: analysis of exchange markets; theories of international trade; China and India: the impact of emergent economies in Occidental world; globalization, social economy and the environment; multilateralism and the WTO

Mandatory literature

Pereira Paulo Trigo 070; Economia e Finanças Públicas
Ribeiro José Joaquim Teixeira 1908-; Lições de finanças públicas. ISBN: 972-32-0407-X
Posner Richard A.; The^economics of private law. ISBN: 1-85898-642-7
Rosen Harvey S.; Public finance. ISBN: 0-07-116738-2
Barbosa António Pinto; Economia pública. ISBN: 972-8298-67-6
Mankiw N. Gregory; Introdução à economia. ISBN: 85-352-0853-4
Cruz José Manuel Neves; Economia e política. ISBN: 978-972-32-1583-0
Samuelson Paul A.; Economia. ISBN: 972-9241-40-6
Musgrave Richard A.; Public finance in theory and practice. ISBN: 0-07-100227-8
Pugel Thomas A.; International economics. ISBN: 0-07-248748-8
Cullis John; Public finance and public choice. ISBN: 0-19-877579-2
Medeiros Eduardo Raposo de 1937-; Economia internacional
Pereira Paulo Trigo 070; Economia e finanças públicas

Complementary Bibliography

Cruz José Manuel Neves 1965-; A^influência da burocracia e dos grupos de interesse na escolha pública. ISBN: 978-972-32-1761-2
Forte, Francesco; Principles of public economics. ISBN: 9781858986739

Teaching methods and learning activities

Theoretical classes: Exposition of the contents of the discipline with the support of graphics from economics; use of case-studies based on information published in the media.
Seminaries: 7 seminaries followed by discussion will be provided (1 h 15 m - Conference; 15 m - Discussion).

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Description	Type	Time (hours)	Weight (%)	End date
Attendance (estimated)	Participação presencial	60,00
	Total:	-	0,00

Eligibility for exams

Elements of distributed evaluation (scale scored between 0 and 20; the student is approved if she obtains a final result ≥ 10):
1) 75% of assiduity to classes (A)
2) Formulation of a “powerpoint” presentation about a topic referred in the Theoretical-Practise classes (B)
3) Oral Exam (E) - (if B ≥ 12) => Final result = F = 50%*B + 50% E, or F = E, if E > (50%*B + 50% E).
4) Written Exam (G) – (if 8 ≤ B ≤ 12 ( > 12 if the student rejects the oral exam) => Final result = H = 50%*B + 50% G, or H = G, if G > (50%*B + 50% G)
5) If one of the following elements occurs, the student loses her distributed evaluation result (B). Then, to be approved in the discipline has to do a final exam. Elements that imply the lost of distributed evaluation result: A < 75% (possibility to access to the 1st period and the 2nd period of final evaluation); B < 8 (possibility to access to the 1st period and the 2nd period of final evaluation); E, F, G or H < 8 (uniquely possibility to access to the 2nd period of final evaluation).
6) If 8 ≤ (F or H) < 10, and the student does not want to loose B, she has to do an oral exam (I), and her final result will be:
J = 50%*B+20%*G(or F)+30%*I.

Calculation formula of final grade

See the Evaluation Regulations of this Faculty.

Examinations or Special Assignments

1) Formulation of a “powerpoint” presentation about a topic referred in the Theoretical-Practise classes (B)
2) Individual paper about one of the Seminaries (C)

Classification improvement

See the Evaluation Regulations of this Faculty.