National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
Government of the Russian Federation
National Research University Higher School of Economics
Department of Public Policy
Syllabus of the course:
Economic institutions and Ethics in Public Policy
Master’s program “Political Analysis and Public Policy”
Political Science (030200.68)
Author of the syllabus:
Boris Kashnikov, PhD in philosophy, bkashnikov@hse.ru
Edgar Demetrio Tovar García, PhD in economics, etovar@hse.ru
Approved by the Department of Public Policy
on (day/month/year) «___»____________ 2014
Head of department:
Nina Belyaeva (signature)
Moscow, 2014
This syllabus cannot be used by other university departments and other higher education
institutions without the explicit permission of the department of Public Policy.
1
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
1
Scope of Use
The present program outlines the requirements for students’ knowledge and skills and the content of
the course.
The syllabus is developed for the department, responsible for teaching the course, professors and
teaching assistants, students of the master’s program ‘Political Analysis and Public Policy’.
This syllabus meets the standards required by:
● Standards of National Research University Higher School of Economics of Federal Masters’
Degree Program 030200.68 “Political Science”,
● Master’s program ‘Political Analysis and Public Policy’ of Federal Master’s Degree Program
030200.68 “Political Science”,
● Curriculum of the master’s program ‘Political Analysis and Public Policy’ as of 2014.
2
Objectives of the course
● To inculcate in students analytical skills from the new institutional economics, and particularly
from ethics, and their roles in the policy making process.
● To introduce students to basic economics and new institutional economics.
● To obtain basic skills of ethical analysis of conflicts, war, massive violence, and global security.
● To analyze the design of public policy under ethical, economical, and institutional concerns in modern
socio-economic and political systems.
● To show possibilities of the political analysis based on fundamental understanding of structure and
dynamics of ethics, economics, and institutions in their interaction with actors of public policy.
3
Supposed Outcomes.
As a result of studying of discipline the student should:
 Know the theoretical and conceptual framework in institutional economics and ethics, and their relevance in
public policy.
 Be able to identify the impact on public policy of institutions, with focus in the impact from ethical
concerns.
 Get skills to research problems in the sphere of public policy, using the neo-institutional economic approach
and ethical analysis.
The students are supposed to adopt the following competences:
Competence
Ability to generate
concepts and theoretical
models, to test new
methods and tools for
professional activities
Code
SC-2
Descriptors (indicators for
achievement the result)
Students give definitions of public
policy, subjects of public policy,
ethics, and institutional
economics.
Students apply ethical and
institutional analysis on public
2
Educative forms and methods
aimed at generation and
development of the
competence
Review of literature
Discussion of the essay.
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
Competence
Ability to freely use
Russian and foreign
languages for professional
communication
4
Descriptors (indicators for
achievement the result)
Code
PC-3
policy, term paper, and master
thesis.
Students give explanations of the
influence of ethical and
institutional variables on public
policy, in term paper and master
thesis
Educative forms and methods
aimed at generation and
development of the
competence
Presentation of research in
the sphere of ethics,
institutional economics, and
public policy.
Role of the discipline within the structure of Master program
For specialization 030200.68 “Political Science”, master’s program “Political Analysis and Public Policy”,
in the first year, this is an optional course.
This course is based on the following disciplines:
●
●
●
●
Philosophy.
Political Science
Economics
Sociology
The following knowledge and competences are needed to study the discipline:
● The basic skills of philosophical analysis
● The basic knowledge of the structure of the political
● The knowledge of the basics of international and domestic legislation
● Some general knowledge of sociology would help
● Basic knowledge of economics
● Competences for public policy analysis, using quantitative and qualitative research methods.
Main competences developed by studying this discipline can be used to study the following
discipline:
● Research seminar
● Soft Law and Regulatory Governance
● Think Tanks as Policy Actors
5
Course Plan
№
1.
Total
hours
Topic
Basic
Economics:
Conceptual
framework
for
3
6
Independe
Work in the class nt work
Lectures Seminars
4
8
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
2.
3.
4.
5.
6.
7.
Total:
institutional economics
New institutional economics: formal and informal
institutions
Basic Ethics: Conceptual framework for personal
conduct
Normative morals and institutional design
Ethics for public policy
Institutional design and public policy
Challenges to institutional analysis
6
10
4
4
14
8
4
2
14
8
18
6
10
144
4
8
4
4
32
2
8
14
14
14
14
92
4
20
Requirements and Grading
Type Type of
1st Characteristics
of
work
year
grading
3 4
Current Essay
5 10 thousand characters by the middle of the fourth module is due. See below.
Independent 8 8 Independent work: One page report on the corresponding reading (weekly).
students’
Send it by email previously to the lesson.
work
Homework 7
Final Exam
9 Test: 90 minutes
6.1
Course Evaluation Criteria
1) Final exam (FE)
The final exam (FE) consists of open questions about the main concepts and theories in institutional
economics, and implications on public policy.
2) Independent students’ work (IW)
Independent work 1 (topics 3-5): We will have 2 seminars in the third module. Two oral presentations of
about 10 minutes each are due in the third module for each student. One on one of the theories of
normative morality (third class meeting). One on one the theories of justice (fifth meeting). The topics will
be determined in advance.
Independent work 2 ( topics 1,2, 6 and 7):
Students have to write a report (one page) for each required reading (article or chapter of the textbook),
where the student must identify main research question, working hypothesis, main objective, methodology,
and conclusions. The IW must be sent by email, previously to the corresponding lesson.
4
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
3) Essay (ES)
Students have to write an essay (10 thousand characters) by the middle of the fourth module on one of the
topics of the content of the course. The essay is supposed to be a piece of creative work to justify this or
that ethical approach. It may be utilitarianism, deontology, ethical relativism, amoralism, egoism, theory of
justice by John Rawls or whatever. It may belong to personal or institutional morality. Facts should be
provided and practical situations analyzed. For example, if one sticks to utilitarianism, the essay should
demonstrate the advantages of this ethical approach to settle the social problems or to provide the true
personal goals to achieve in life. One may give an example of how it works to, say; arrange distribution of
social goods or political institutions in the society. If one sticks to deontology we would expect the analysis
of its capacity to preserve inviolable rights of the citizens. Etc.
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Course Description. The content of the course.
1. Basic economics: Conceptual framework for institutional economics (4 hours)
Basic concepts in economics. Scarcity and efficiency. Microeconomics and Macroeconomics. The market
mechanism. Supply and demand model.
Required readings:
Samuelson, P. A., & Nordhaus, W. D. (1998). Economics (Sixteenth., p. 781). McGraw-Hill.
Mankiw, N. G. (2011). Principles of economics (Sixth., p. 856). South-Western, Cengage Learning.
Optional readings:
Bowles, S. (2004). Microeconomics: behavior, institutions, and evolution (p. 584). Princeton University
Press. Retrieved from
http://books.google.com/books?hl=en&lr=&id=HAiMDU4qv0IC&oi=fnd&pg=PA585&dq=Microeconomi
cs:+Behavior,+institutions,+and+evolution&ots=BAkOpML98p&sig=XwxZ8l53IPVKNLHyKFVjx6KNWM
2. New institutional economics: Formal and informal institutions (12 hours)
The “old” and the “new” institutionalism. The firm, externalities, market, transaction costs, social cost, and property
rights. Organizations, contracts, and institutions. Formal institutions (constitutions, laws, property rights) and
informal institutions (sanctions, taboos, customs, traditions, code of conduct, moral).
Required readings:
Brousseau, É., & Glachant, J.-M. (Eds.). (2008). New institutional economics: a guidebook (p. 558).
Cambridge University Press.
Coase, R. H. (1937). The nature of the firm. Economica, 4(16), 386–405. Retrieved from
http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0335.1937.tb00002.x/full
Coase, R. H. (1960). The Problem of Social Cost. Journal of Law and Economics, 3(1), 1–44.
North, D. C. (1991). Institutions. Journal of Economic Perspectives, 5(1), 97–112.
Parada, J. J. (2002). Original Institutional Economics and New Institutional Economics: Revisiting the
Bridges (Or the Divide). Oeconomicus, 6, 43–61. Retrieved from
http://cas.umkc.edu/econ/_researchCommunity/oeconomicus/VolumeVI/Fall2002/Parada-Falll2002.pdf
Williamson, O. E. (1998). Transaction cost economics: how it works; where it is headed. De Economist,
146(1), 23–58. Retrieved from http://link.springer.com/article/10.1023/A:1003263908567
Williamson, O. E. (2000). The new institutional economics: taking stock, looking ahead. Journal of
Economic Literature, 38, 595–613. Retrieved from http://www.jstor.org/stable/2565421
Optional readings:
5
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
Coase, R. H. (1998). The New Institutional Economics. American Economic Review, 88(2), 72–74.
DiMaggio, P., & Powell, W. (1991). Introduction. In P. DiMaggio & W. Powell (Eds.), The New
Institutionalism in Organizational Analysis (pp. 1–38). Chicago, IL: University of Chicago Press.
Hodgson, G. M. (1998). The approach of institutional economics. Journal of Economic Literature, 36(1),
166–192. Retrieved from http://www.jstor.org/stable/2564954
Hodgson, G. M. (Ed.). (2002). A modern reader in institutional and evolutionary economics: key concepts
(p. 239). Edward Elgar. Retrieved from
http://books.google.com/books?hl=en&lr=&id=xDBmAwAAQBAJ&oi=fnd&pg=PR1&dq=A+Modern+R
eader+in+Institutional+and+Evolutionary+Economics+Key+Concepts&ots=rmTSoDCf7&sig=LGnAgGyi2MGRYr4qvVMqHgbSYbI
Ménard, C., & Shirley, M. M. (Eds.). (2008). Handbook of new institutional economics (p. 884). SpringerVerlag Berlin Heidelberg. Retrieved from http://link.springer.com/content/pdf/10.1007/978-3-540-693055.pdf
Rutherford, M. (2001). Institutional economics: then and now. Journal of Economic Perspectives, 15(3),
173–194. Retrieved from http://www.jstor.org/stable/2696562
Staniek, Z. (2010). Diversification of institutional economics. Warsaw Forum of Economic Sociology, 1(1),
90–116. Retrieved from http://yadda.icm.edu.pl/yadda/element/bwmeta1.element.ekon-element000171274067
Williamson, O. E. (1999). Public and private bureaucracies: a transaction cost economics perspectives.
Journal of Law, Economics, and Organization, 15(1), 306–342. Retrieved from
http://jleo.oxfordjournals.org/content/15/1/306.short
Williamson, O. E. (2005). The economics of governance. American Economic Review, 95(2), 1–18.
3. Basic Ethics: Conceptual framework for personal conduct (6 hours)
The meaning of Ethics and Morality. Ethical Theory, General Ethics and Individual Ethics. The nature of
moral concepts. Good and Evil. Right and Wrong. The system of ethical categories. Ethical principles.
Ethics and Law. The problem of evil laws. Ethics and customs. The problem of corrupted customs. Ethics
and rational choice theory. The problems of the rationality of evil. The problem of evil means and the
greatest good. Authoritarian morality. The problem of religious ethics. Moral authoritarianism and
fanaticism. The morality of association. The problem of moral conformism. The morality of principles.
Universalizability, Publicity, Overridingness and Practicality of ethical principles. Autonomy of the ethical
person. Ethics and the problem of the justification of evil. Normative Judgments and Prescriptive
Statements. The logic of ethical inference. Ethical emotivism. The problems of ethical discourse. Egoism,
moralism, amoralism and immoralism. The Golden Rule. Universalism and Absolutism. Cultural Diversity.
Relativism and moral disagreement. Relativism and the problem of tolerance. The problem of the toleration
of the intolerant.
Required readings::
Blackburn, S. Being Good. A Short Introduction to Ethics. Oxford: Oxford Univiversity Press, 2002.
Optional readings:
Narveson, J. This is Ethical Theory. Chicago and La Salle, Illinois: Open Court, 2009
Holmes, R. Basic Moral Philosophy. Belmon, California: Wadsworth Publishing Company, 1993
Frankena, W. Ethics. London, etc.: Prentice-Hall, INC, 1963
Hare, R. Sorting out Ethics. Oxford: Clarendon Press, 1997
Hare, R. Moral Thinking: Its Levels, Method and Point. Oxford: Oxford University Press, 1981.
6
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
MacIntyre, A. A Short History of Ethics. A history of moral philosophy from the Homeric age to the
twentieth century. New York, NY: Macmillan Publishing Company, 1996.
MacIntyre, A. Whose Justice? Which Rationality? Notre Dame, Indiana: University of Notre Dame Press,
1988
4. Normative morals and institutional design (6 hours)
Teleological and deontological theories. The ethics of virtue. The problems of ethical hedonism. Morality
and happiness. Conventionalism in ethics. Utilitarianism. The greatest happiness for the greatest number
principle. Categorical imperative and the problem of moral absolutism. Ethical relativism.
The positive and negative rights. The problem of social parasitism and rights. The structure and the
development of rights and duties in the society. The problem of envy and social equality. The problem of
distributive justice. The problem of just punishment. Capital punishment. Freedom and Justice. The moral
problems of the welfare state. Feminism and the problems of injustice against women. Communitarian
critique of justice. The Marxian critique of exploitation and alienation in capitalist society. Anarchy, state
and utopia. Just bargaining. The problem of moral politics. The Just War theory. Realism and the
justification of political violence. Pacifism. The political state and the problem of institutional evil.
Required readings::
Holmes, R. Basic Moral Philosophy. Belmon, California: Wadsworth Publishing Company, 1993
Optional readings:
Narveson, J. This is Ethical Theory. Chicago and La Salle, Illinois: Open Court, 2009
Frankena, W. Ethics. London, etc.: Prentice-Hall, INC, 1963
Hare, R. Sorting out Ethics. Oxford: Clarendon Press, 1997
Hare, R. Moral Thinking: Its Levels, Method and Point. Oxford: Oxford University Press, 1981.
MacIntyre, A. A Short History of Ethics. A history of moral philosophy from the Homeric age to the
twentieth century. New York, NY: Macmillan Publishing Company, 1996.
MacIntyre, A. Whose Justice? Which Rationality? Notre Dame, Indiana: University of Notre Dame Press,
1988
5. Ethics for public policy (8 hours)
The relationships between ethics and public policy. The global starvation and the obligations of wealthy
countries. The public policy regarding abortions. Capital punishment. Poverty line and the problem of
redistribution. Euthanasia. Peace building and national security. Human trafficking and global slavery.
Crime prevention. Social injustice and inequality. Climate change. Developing nations and foreign aid.
Private military companies. The problem of homelessness. National tax system and the problem of flat or
progressive taxation. Law and morality. Corruption. The ethical matters of secession. Global movements
and quest for justice.
Required readings:
Public Policy. Why Ethics Matters? Jonathan Boston, Andrew Bradstock, and David Eng. (Eds.). Canberra: ANU
E Press, 2010.
http://press.anu.edu.au/apps/bookworm/view/Public+Policy%3A+Why+ethics+matters/5251/upfront.xhtml
Optional readings:
7
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
Sen, A. The Idea of Justice. London: Allen Lane, 2009.
Pogge, T. World Poverty and Human Rights: Cosmopolitan responsibilities and reforms. 2nd edn.
Cambridge: Polity Press, 2008.
Singer, P. The Life You Can Save. Melbourne: Text: 2009.
Brock, G. Global Justice: A cosmopolitan account. Oxford: Oxford University Press, 2009.
Nagel, T. The Possibility of Altruism. Oxford: Clarendon. 1970.
M. Clayton and A. Williams (eds). The Ideal of Equality. London: Macmillan, 2007.
Frankfurt, H. 1987. ‘Equality as a moral ideal.’ Ethics 98(1): 21–43.
Kuran, T. Private Truths, Public Lies: The social consequences of preference falsification. Cambridge,
MA: Harvard University Press, 1997.
6. Institutional design and public policy (10 hours)
The design of institutional systems, as a major policy tool, to regulate business activities, to promote
development and growth, and to shape public policies in different fields (e.g. banking policy, urban
development, education, and network industry).
Required readings:
Brousseau, É., & Glachant, J.-M. (Eds.). (2008). New institutional economics: a guidebook (p. 558).
Cambridge University Press.
Optional readings:
Johnson, J. E. (1994). The Russian banking system: Institutional responses to the market transition∗.
Europe-Asia Studies, 46(6), 971–995. doi:10.1080/09668139408412212
Klein Woolthuis, R., Hooimeijer, F., Bossink, B., Mulder, G., & Brouwer, J. (2013). Institutional
entrepreneurship in sustainable urban development: Dutch successes as inspiration for transformation.
Journal of Cleaner Production, 50, 91–100. doi:10.1016/j.jclepro.2012.11.031
7. Challenges to institutional analysis (4 hours)
Institutional design. Highlight some of the research directions to be explored in the future.
Required readings:
Brousseau, É., & Glachant, J.-M. (Eds.). (2008). New institutional economics: a guidebook (p. 558).
Cambridge University Press.
8
Teaching Methods and Recommendations
The course is interactive; lectures are combined with discussions of the readings for the week,
followed by presentations. Students are also required to make report and oral presentation of their
homework.
The tentative topics of the essays. The students can choose one of the topics or propose the topics of
their own.

Capital punishment. The ethical analysis.

The moral limits of tolerance.

The possibility of just terrorism.

The justice of feminism
8
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”














The ethics of human rights.
Moral man in immoral society
The justification of torture.
The moral limits of social equality
Environment and moral responsibility
Feminism and justice
The just society
Liberalism and justice
Anarchy and justice
The ethics of pragmatism
Egoism, rationality and publicity
The ethics and Prisoners Dilemma Situation.
The just punishment
The ethics of and arms control
9
Grading
9.1 Provisional Topics for Current Control
Continuously, teachers will evaluate independent students’ work, readings, and presentations.
For example:
Identify methodology in the reading 1
Identify recommendations for policymakers in the reading 1
9.2 Provisional questions for grading estimation
Which is the key difference between the “old” and the “new” institutional economics
Based on R. Coase, define “transaction costs”
Based on O. Williamson, which are the most important categories of property rights?
Based on D. North, define “institutions: formal and informal”
How institutional factors affect the design of public policy?
10 The
pattern of forming the final grade
The formula for the accumulated grade is the following
Oaccumulative = 0,3 * Ohomework 1 + 0,3 * Oindependent work + 0,4 * Oessay
The formula for the final grade is the following
Ofinal = 0,6 * Oaccumulative + 0,4 * O finalexam
11 Reading
and Materials
See the course description, after each topic you will find it
9
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
12 Equipment
Over head projector will be needed for each lecture.
10