harvard government 90 syllabus

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Professor Torben Iversen Institute for Quantitative Social Science CGIS N-305 Office Hours: By appointment E-mail: [email protected] http://www.fas.harvard.edu/~iversen Government 90au Fall 2007 Tuesday 2-4 (CGIS N-108) Political Economy This course is a survey of topics and theories in comparative political economy (=the interplay of politics and economics in different countries) with a focus on advanced democracies (North America, Western Europe, and East Asia). Why do some governments and institutions generate better economic performance than others? Why are some economies more egalitarian than others? Why do some governments redistribute more than others? We will concentrate on theories that seek to explain the main differences in economic policy and performance across nations, while trying to establish the relative importance of domestic institutions, political cleavages, partisanship, and "external" forces of change such as globalization. Against the backdrop of the fall of communism, one of the overriding themes of the seminar is whether there are distinct and enduring "varieties of capitalism”, or whether modern political economies converge to a common efficient form (the American perhaps?). If there are distinct varieties, can societies choose between them? And if so: how? Although this is a Government course, we make use of insights from economics. For this reason it is an advantage, but not a requirement, to have taken an introductory course in economics (micro, macro or both). Yet the most important requisites are an open mind and a desire to understand the diversity of ways in which democratic societies have chosen to organize their economies, and how these choices impact the welfare of their citizens. To facilitate in the preparation for each week's class, I will post reading notes online that highlight some of the central themes and issues for a class and occasionally provide some background theory or history. The notes can (only) be accessed from the course web site at http://www.courses.fas.harvard.edu/colgsas/8213

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Page 1: Harvard Government 90 Syllabus

Professor Torben IversenInstitute for QuantitativeSocial ScienceCGIS N-305

Office Hours: By appointmentE-mail: [email protected]://www.fas.harvard.edu/~iversen

Government 90auFall 2007

Tuesday 2-4(CGIS N-108)

Political EconomyThis course is a survey of topics and theories in comparative political economy(=the interplay of politics and economics in different countries) with a focus onadvanced democracies (North America, Western Europe, and East Asia). Why dosome governments and institutions generate better economic performance thanothers? Why are some economies more egalitarian than others? Why do somegovernments redistribute more than others?

We will concentrate on theories that seek to explain the main differences ineconomic policy and performance across nations, while trying to establish therelative importance of domestic institutions, political cleavages, partisanship, and"external" forces of change such as globalization. Against the backdrop of the fallof communism, one of the overriding themes of the seminar is whether there aredistinct and enduring "varieties of capitalism”, or whether modern politicaleconomies converge to a common efficient form (the American perhaps?). If thereare distinct varieties, can societies choose between them? And if so: how?

Although this is a Government course, we make use of insights from economics.For this reason it is an advantage, but not a requirement, to have taken anintroductory course in economics (micro, macro or both). Yet the most importantrequisites are an open mind and a desire to understand the diversity of ways inwhich democratic societies have chosen to organize their economies, and how thesechoices impact the welfare of their citizens.

To facilitate in the preparation for each week's class, I will post reading notes onlinethat highlight some of the central themes and issues for a class and occasionallyprovide some background theory or history. The notes can (only) be accessed fromthe course web site athttp://www.courses.fas.harvard.edu/colgsas/8213

Page 2: Harvard Government 90 Syllabus

Requirements:

Two critical essays of 6-7 pages each, one take-home final exam, and activeparticipation. The essays must highlight a problem, theory, or theme in the readingsfor one week (but with references to previous weeks where appropriate), and eachessay should cover a different part of the course. Papers are due at noon the daybefore class (i.e., on Monday). The take-home final (9-10 pages) will cover thematerials for the entire class. See online syllabus for further instructions on writingpapers. Since this course is a seminar, it is essential that students come prepared forclass and participate actively.

Grading:

Papers: 20% eachFinal: 35%Participation: 25%

Readings:

- Books available for purchase at the Coop:

Mancur Olson. The Rise and Decline of Nations. Yale University Press (1982)

Dani Rodrik, Has Globalization Gone Too Far? Institute for InternationalEconomics (1997)

Jonas Pontusson, Inequality and Prosperity: Social Europe Vs. Liberal America.Cornell University Press, 2005.

Alberto Alesina and Edward Glaeser, Fighting Poverty in the US and Europe.Oxford University Press, 2003.

- All other readings are available online by using the links on the electronicsyllabus.

Topics and Readings

Week 1 (9/18): Introduction and preview

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PART I: INSTITUTIONAL FOUNDATIONS OF PROSPERITY

Week 2 (9/25). Markets and "Embedded Liberalism"

John G. Ruggie, "International Regimes, Transactions and Change. EmbeddedLiberalism in the Post-War Economic Order."International Organization (1982),

Barry Eichengreen, "Institutions and Economic Growth: Europe after World WarII.. In Nicholas Crafts and Gianni Toniolo, eds.,Economic Growth in Europe since1945. Cambridge: Cambridge University Press, 1997.

Douglas North, Institutions, Institutional Change and Economic Performance(Cambridge University Press, 1990), chapters 12-14. [Course pack]

Jonas Pontusson, Inequality and Prosperity, ch.1 .

Week 3 (10/2). Varieties of capitalism and economic performance

Mancur Olson, The Rise and Decline of Nations. New Haven: Yale U. Press (1982),chs. 2-3.

Peter Lange and Geoffrey Garrett, "The Politics of Growth: Strategic Interactionand Economic Performance, 1974-1980." Journal of Politics 47 (1985), 792-27.

Jonas Pontusson, Inequality and Prosperity, ch.2.

Peter A. Hall and David Soskice, eds., Varieties of Capitalism: The InstitutionalFoundations of Comparative Advantage (2001): Introduction.

Week 4 (10/9). Central banks and macroeconomic policy

Douglas Hibbs, "Political Parties and Macroeconomic Policy," American PoliticalScience Review, 71 (4) (1977). [Read only pp. 1467-75]

Vittorio Grilli, Donato Masciandoro and Guido Tabellini. "Political and MonetaryInstitutions and Public Financial Policies in the Industrialized Countries," EconomicPolicy 13 (1991).

Alberto Alesina and Larry Summers, “Central Bank Independence andMacroeconomic Performance – Some Comparative Evidence.”Journal of Money,Credit, and Banking (1993), 151-62. Jonas Pontusson, Inequality and Prosperity, ch.5.

David Soskice, “Macroeconomics and Varieties of Capitalism.” In Martin Rhodes,

Page 4: Harvard Government 90 Syllabus

Bob HanckÉand Mark Thatcher (eds.), Beyond Varieties of Capitalism, Oxford:Oxford University Press 2006.

PART II: DIVIDING THE PIE: POWER, DEMOCRACY, ANDTHE FAMILYWeek 5 (10/16): Perspectives on the welfare state

Alberto Alesina and Edward Glaeser, Fighting Poverty in Europe and the U.S. NewYork: Oxford University Press, ch. 1

Jonas Pontusson, Inequality and Prosperity, ch.7.

Allan H. Meltzer and Scott. F. Richard, "A Rational Theory of the Size ofGovernment” Journal of Political Economy 89 (1981), 914-17 (Read only first 3pages).

Gosta Esping-Andersen, Three Worlds of Welfare Capitalism, chs. 1-3.

Estevez-Abe, Margarita, Torben Iversen and David Soskice. 2001. "SocialProtection and the Formation of Skills: A Reinterpretation of the Welfare State," inPeter A. Hall and David Soskice, eds., Varieties of Capitalism: The InstitutionalFoundations of Comparative Advantage.Oxford: Oxford University Press.

Week 6 (10/23): Democratic institutions and redistribution

Alesina and Glaeser, Fighting Poverty, ch. 4.

Torsten Persson and Guido Tabellini, The Economic Effects of Constitutions. MITPress, 2003, [Read only Chapter 2, plus pp. 129-34 and 140-44]

Arend Lijphart, "Unequal Participation: Democracy’s Unresolved Dilemma,"American Political Science Review, 91 (1997), pp. 1-14.

Boix, Carles, “Setting the Rules of the Game: The Choice of Electoral Systems inAdvanced Democracies.” American Political Science Review 93 (1999), 609-24.

Torben Iversen and David Soskice, “Distribution and Redistribution: The Shadowfrom the Nineteenth Century“ [if you are interested in more detail on the argumentabout PR and redistribution, click here. If you interested in seeing more about thehistorical argument, click here]

Week 7 (10/30): The politics of work and leisure

Jonas Pontusson, Inequality and Prosperity, ch.4.

Torben Iversen and Anne Wren, “Equality, Employment, and Budgetary Restraint:

Page 5: Harvard Government 90 Syllabus

The Trilemma of the Service Economy.” World Politics, 50 (1998), 507-46.

David Rueda, “Insider-Outsider Politics in Industrialized Democracies: TheChallenge to Social Democratic Parties.” American Political Science Review 99,2005, 61-74.

Alberto Alesina, Edward Glaeser, and Bruce Sacerdote, “Work and Leisure in theU.S. and Europe: Why so Different? Harvard Institute of Economic ResearchDiscussion Paper No. 2068(2005).

Olivier Blanchard, “The Economic Future of Europe.” Journal of EconomicPerspectives 18 (Fall 2004), 3-26.

Week 8 (11/6): Gender, Family, and Inequality

Gary Becker. Treatise on the Family (Harvard University Press 1993), ch. 2.[Course pack]

Sven Lundberg and R. A. Pollak, “Bargaining and Distribution in Marriage”.Journal of Economic Perspectives 10 (4) (1996), 139-58

GÖsta Esping-Andersen, Social Foundations of Postindustrial Economies. OxfordUniversity Press . READ ONLY pp. 60-67 (plus the definition of de-familialization on p. 51).

John R. Lott and Lawrence W. Kenny, "Did women's suffrage change the size andscope of government?" Journal of Political Economy 107 (6), 1163-1198 (1999).

Torben Iversen and Frances Rosenbluth, “The Political Economy of Gender:Explaining Cross-National Variation in the Gender Division of Labor and theGender Voting Gap.”American Journal of Political Science 50 (2006), 1-26.

PART III: THE POLITICS OF CHANGE

Week 9 (11/13): The impact of globalization andpostindustrialization

James Alt, Jeffry Frieden, Michael J. Gilligan, Dani Rodrik and Ronald Rogowski,"The Political Economy of International Trade - Enduring Puzzles and an Agendafor Inquiry, " Comparative Political Studies 29 (6), 1996.

Dani Rodrik, Has Globalization Gone Too Far? (Washington DC: Institute forInternational Economics, 1997), chs. 3-4.

Simmons Beth A. And Zachary Elkins, “The Globalization of Liberalization: PolicyDiffusion in the International Political Economy.” American Political Science

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Review 98 (1), 2004: 171-189.

Torben Iversen and Thomas Cusack "The Causes of Welfare State Expansion:Deindustrialization or Globalization?" World Politics, April 2000.

*** NO CLASS ON 11/20 – WEEK OF THANKSGIVING RECESS ***

Week 10 (11/27): New cleavages: Race, postmarialism, and risk

Alesina and Glaeser, Fighting Poverty, ch. 6. (on ethnic diversity)

Ronald Inglehart, "Value Change in Industrial Societies." American PoliticalScience Review 81, 1987, 1289-1295. [Read only first 7 pages: 1289-95]

Ronald Inglehart and Paul R. Abramson, "Economic Security and Value Change."American Political Science Review 88 (1994), 336-54 .

Torben Iversen, “Class Politics is Dead. Long Live Class Politics.” ComparativePolitics Newsletter, 2006.

Thomas Cusack, Torben Iversen, and Philipp Rehm, “Risk at Work: The Demandand Supply Sides of Government Redistribution” Prepared for the Oxford Review ofEconomic Policy.

Week 11 (12/4): The politics of institutional reform

Peter A. Hall. "Policy Paradigms, Social Learning and the State.” ComparativePolitics 25 (1993), 275-96.

Paul Pierson, “The New Politics of the Welfare State.” World Politics (1996), 143-79.

Jonas Pontusson, Inequality and Prosperity, ch. 8.

Martin Rhodes, “The Political Economy of Social Pacts: ‘Competitive Corporatismand European Welfare Reform” in Paul Pierson, ed., The New Politics of theWelfare State. New York: Oxford University Press: 165-94.

Week 12 (12/11): Economic inequality and political polarization

Alesina and Glaeser, Fighting Poverty, ch. 7.

Nolan McCarty, Keith Poole, and Howard Rosenthal, Polarized America. Ch. 1; 3.

Jonas Pontusson, “The Politics of Inequality and Partisan Polarization in OECDCountries.”

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Martin Gilens, “Inequality and Democratic Responsiveness: Who Gets What TheyWant from Government?”

Week 13 (12/18): Summary and conclusions