Introduction

Lecture 1 part 1, Political Economics I

OSIPP, Osaka University

6 October, 2017

Masa Kudamatsu

Osaka University Political Economics sequence

Political Economics II

Theories / Methodologies

Political Economics I

Empirics / Topics

Masa Kudamatsu

Tetsu Matsubayashi

Undergrads can take credit

Undergrads can only audit

Quarter 3 (Oct - Nov)

Quarter 4 (Dec - Feb)

To help you do research on politics as an economist

PhD students can only audit

PhD students can take credit

Political Economics I

Aim 1: Construct a simple model to guide your empirical research 

Examples from top journal papers

Political Economics I

Aim 2: Learn the jargons of political economics

e.g. "Downsian" electoral competition

So you'll be able to read any papers in political economics

Aim 3: Learn the evolution of theoretical interests

Inspiration for coming up with new theoretical questions

Political Economics I

How we achieve these aims?

Each lecture's structure

Topics covered

Term paper

Each lecture's structure

How to set up a model

Equilibrium concepts

and how to solve the model

Which assumptions of the model

are not innocuous

Evidence for model assumptions / predictions

Examples of applying the basic model

Topics covered

in this course

workhorse models in political economics

5

Lecture 1

Lecture 2

Lecture 3

Lecture 4

Lecture 5

Median Voter Theorem

Citizen-candidate Model

Probabilistic Voting Model

Political Agency Model

Legislative Bargaining Model

Recent top journal papers

NBER Working Papers in the past 12 months

Median Voter Theorem

Citizen-candidate Model

Probabilistic Voting Model

Political Agency Model

Legislative Bargaining Model

topics for which no single accepted model is available in political economics

3

Lecture 6a

Lecture 6b

Lecture 7

War

Voter Turnout

Lobbying

Contest Model / Asymmetric Information / Commitment

Pivotal Voting / Mobilization / Ethnical Voting

Contest Model / Menu Auction / Cheap Talk /

Verifiable Information Transmission

NBER Working Papers in the past 12 months

Contest Model for

War

 Contest Model for Endogenous Institution

Contest Model for Lobbying

Turnout

Term Paper

Grading Policy

You'll be graded purely based on your term paper

I want you to be a researcher, not a learner

Submission deadline:

send a PDF copy to kudamatsu@osipp.osaka-u.ac.jp by

9 am

Friday December 15

cf. Last lecture: December 1

Term paper

It has to be a research proposal (imagine applying for a grant)

Research question that is original, interesting, and feasible

Theoretical framework (not necessarily in math)

Empirical method & Data sources

For theory, one proposition for a specific case is enough

For empirics

Review the literature only for why original and important

Come up with a research question

by Next Friday

Then throughout the course you can see

whether each model can be used to answer the question

How?

And one good source of inspiration is...

Politics in Japan

Read this book (amazon.co.jp)

Policy-making process in Japan is

often not based on laws

This book helps you understand such unwritten rules followed by Japanese politicians

Written in 2007,

but still largely relevant

Prerequisites

Do you know what Perfect Bayesian Equilibrium is?

Do you know what Regression Discontinuity Design is?

If your answers are both yes...

you're ready for this course

If you don't know what Perfect Bayesian Equilibrium is...

Steven Tadelis (2013)

Game Theory: An Introduction

Princeton University Press

Read Chapters 15-16 of

before Lecture 4 begins (27 October)

Other chapters useful for this course: 

Chapter 5 (Nash Equilibrium)

Chapters 7-8 (Subgame Perfect Nash)

Chapter 11 (Bargaining for Lecture 5)

Chapter 18 (Cheap talk for Lecture 7)

If you don't know what Regression Discontinuity Design is...

Angrist and Pischke (2015)

Mastering Metrics: The Path from Cause to Effect

Princeton University Press

Read Chapter 4 of

before next Friday

 

Other chapters useful for this course: 

Chapter 1 (RCT)

Chapter 3  (IV)

Chapter 5 (DID)

Textbooks

Persson and Tabellini (2000)

Chapter   2   for Lecture 1

Sections 3.1-3.3 for Lecture 1

Section 3.4   for Lecture 3

Section 5.3   for Lecture 2

Section 5.4   for Lecture 5

Chapter   8   for Lecture 3

Chapter 10   for Lecture 5

Besley (2006)

Chapter 3 for Lecture 4

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